Bitcoin’s gains are short lived, and the world’s number one cryptocurrency is now trading where it was during late September when Bakkt initially failed to make a solid impression on crypto traders.
Bitcoin and Its Comrades Are Suffering
As it would seems, positive blockchain comments from Chinese president Xi Jinping and Bakkt ultimately picking up and attracting several bitcoin futures contracts trades weren’t enough to keep bitcoin where it was. The $9,000 proved difficult for the currency to maintain, and resistance levels appear are inherently winning.
But it’s not just bitcoin that suffers. Ethereum, the second-largest cryptocurrency, is down to $175 at press time. Just yesterday the currency was trading for $180, and Ethereum seems to be experiencing more losses than even BTC, but bitcoin cash – the little “brother” of everyone’s favorite digital coin – has incurred some of the highest losses to date. At the time of writing, it is trading for just over $236 when bitcoin cash, just weeks ago, was trading for $300 even.
The currency has thus lost nearly $70 in a relatively short period of time, and Ripple’s XRP – the world’s third-largest cryptocurrency – is trading at 25 cents, meaning it’s lost more than five cents since reaching its late October trading figure of $0.30.
The strange thing is that there doesn’t seem to be any real reason for the drops. Crypto continues to make headway in developing nations, where it is largely used as a means of paying for goods and services. In addition, regions such as Switzerland – as covered yesterday by Live Bitcoin News – are replacing many of their traditional financial services and institutions with those of blockchain and crypto.
With so much being done to cement crypto’s place in the financial world, why aren’t prices higher? What are we doing wrong?
One explanation is that this could just be a case of “end-of-year” blues for most forms of crypto. As we likely recall, the final months of 2018 saw bitcoin trading at a serious low. Roughly $3,500, which was about 70 percent lower than where it had ended 2017. One holiday season proved bitcoin good, worthy of numerous gifts and praise, while another proved it naughty and dropped hunks of “digital coal” in users’ stockings.
Some New Projects Aren’t Hitting the Right Mark
At the same time, there are serious projects out there that ultimately serve against the morals and properties of standard crypto. China’s plans for a state-backed cryptocurrency, for example, go against BTC’s decentralized and independent nature, while companies like Google are looking into developing new checking account systems that undermine the stamina and protocol of enterprises like cryptocurrency exchanges.
Bitcoin is being hit from all sides, so while it’s retaining its reputation and moving up the financial ladder, it seems its price is not quite strong enough to undertake further bullying.