Bitcoin sets new low for the year dropping under $6,000

[Cal Jeffrey]

What just happened? Bitcoin took a hit on Wednesday dropping at least nine percent by midday. The coin dipped below $6,000 for the first time since its rise to a peak of $19,378.99 on December 17, 2017. Other cryptocurrencies are struggling as well with Ethereum and XRP down 13 and 15 percent respectively.

Bitcoin values have taken another dip today setting a record low for the year. CNBC reports that the coin fell about nine percent today dropping to $5,640.36, and the day is not even over. As of this writing, the currency is sitting at $5,307.52. This is the first time it has gone under $6,000 since it plummeted from record highs back in December of last year.

Cryptocurrencies, in general, are doing poorly on Wednesday. According to CoinMarketCap, Ethereum lost about 13 percent, and XRP fell 15 points. Brian Kelly, CEO of BKCM, says that the downturn is likely due in part to uncertainty regarding Bitcoin Cash.

“[Bitcoin Cash] was down 18 percent ahead of a ‘hard fork’ scheduled for November 15. The two digital currencies will split into ‘Bitcoin ABC,’ or core Bitcoin Cash, and ‘Bitcoin SV,’ short for ‘Satoshi’s Vision.’ Bitcoin Cash itself is a result of a fork from bitcoin, after a disagreement on the best way to scale a digital currency.”

The capitalization of the entire cryptocurrency market has dropped about $15 billion in just the last 24 hours. CoinMarketCap shows currencies down pretty much across the board. As a whole, the crypto market has dipped more than 70 percent since the beginning of the year.

“A contributing factor [to the dip] is the selloff in tech stocks, which could be having a spillover effect into crypto markets,” said Mati Greenspan, Senior Market Analyst at eToro.

The spillover he is referring to comes from the selloff of tech stocks that were led by Apple, which is down nearly three percent as of midday.

“From a technical analysis standpoint, as bitcoin falls below $6,000 it’s possible that stop-loss orders are automatically going into effect and investors are ‘trying to play the breakout,’” said Greenspan.

Bitcoin at its peak was trading for almost $20,000. It has been hovering around the $6,400 mark for the last few months showing unusual stability. It's too soon to tell if today's dip is the start of another period of volatility.

Permalink to story.

https://www.techspot.com/news/77432-bitcoin-sets-new-low-year-dropping-under-6000.html

 

[toooooot]

Should be x6 cheaper. X60.

 

[Uncle Al]

With the ride the stock market has been taking it's' not surprising the value fell and it will no doubt drop more as the market continues it's correction .....

 

[VitalyT]

People start coming to their senses, and understand that what they are paying for is in fact completely worthless. There is no real commodity or anything at all to back up its value, only 100% speculation.

Also, it is the market that's now almost fully traded and manipulated by bots. If you tried trading it manually at this point, you would be pulling hair, trying to make sense out of it. It is a non-stop pump-and-dump scheme, run by organized market criminals. In the stock market they would be in jail by now, but the currency market isn't regulated at all, the shitty place that it is, so they prosper further, milking dry the naive investors and traders.

A little bit more, and this market may collapse completely, as people will run for their money in a hurry. It has been fun, but it is time to wake up.

 

[Kashim]

If bitcoin or any concurrency has a definite value that doesn't change (1 bitcoin = $100 or something) and is non mine able then it would be a lot more popular especially with the security and privacy the currency provides (its encrypted duh).

How can 1 bitcoin = $100 when the value of the dollar is constantly changing? The whole idea of bitcoin is that it does not rely on any existing currency and is not controlled by any central bank.

 

[EEatGDL]

People start coming to their senses, and understand that what they are paying for is in fact completely worthless. There is no real commodity or anything at all to back up its value, only 100% speculation.

Also, it is the market that's now almost fully traded and manipulated by bots. If you tried trading it manually at this point, you would be pulling hair, trying to make sense out of it. It is a non-stop pump-and-dump scheme, run by organized market criminals. In the stock market they would be in jail by now, but the currency market isn't regulated at all, the shitty place that it is, so they prosper further, milking dry the naive investors and traders.

A little bit more, and this market may collapse completely, as people will run for their money in a hurry. It has been fun, but it is time to wake up.

Good traders make money whether it goes up or down. I've been profiting for three months now and this crossing of the year's low triggered my short position. I have a stash of money sitting there in case a long position triggers. If it goes up: my long position gain will be bigger than the loss I'm willing to take with my short; if it goes down to USD $1 my long entries won't trigger and I'll do a pretty good profit from the way down.

You see: this is not about sentiment and "people realizing something", it is about taking the opportunities the right way. People doesn't realize that the US macro-economy is working like when you ask for a loan with higher interest rate to pay the monthly lower interest of your credit card debt. And I don't see anyone going to jail in a "regulated market", not even Elon Musk and his blatant, no doubt about it, market manipulation.

In the same line of your insight: the rest of the world will one day wake up and realize that they've been exporting cars, electronics, and other tangible goods in exchange of worthless paper, each day worthing even less, since it is being printed without control and supported by some sort of promise: the mighty US potential. Thanks to Nixon your dollar is not even tied to gold and the rest of the world followed this great idea of fiat currency.

Go read the article of John C. Devorak about the Itanium promise, how others believed in it, canceled their own competitor 64-bit CPU architecture projects, followed by the fallout of Intel's stock crash and the negative impact to rest of the computer industry as a whole, once the Itanium's promise landed on its face. You draw the parallels.

 

[yRaz]

Oh no! My ability to buy drugs on the internet is diminished! What ever will I do?!?

 

[Mister_K]

People start coming to their senses, and understand that what they are paying for is in fact completely worthless. There is no real commodity or anything at all to back up its value, only 100% speculation.

Also, it is the market that's now almost fully traded and manipulated by bots. If you tried trading it manually at this point, you would be pulling hair, trying to make sense out of it. It is a non-stop pump-and-dump scheme, run by organized market criminals. In the stock market they would be in jail by now, but the currency market isn't regulated at all, the shitty place that it is, so they prosper further, milking dry the naive investors and traders.

A little bit more, and this market may collapse completely, as people will run for their money in a hurry. It has been fun, but it is time to wake up.

Well looks like you have no clue.

Bitcoin will go back up, but what goes up does come down. This market is volatile, and unless you look at it daily, YOU WILL get burned.

 

[EEatGDL]

Bitcoin will go back up, but what goes up does come down. This market is volatile, and unless you look at it daily, YOU WILL get burned.

Well, sure, it will happen eventually. But this time, the apparent fundamental reason behind this is that mining power is being moved from BTC to BCH SV and it will probably never come back. Craig Wright, who is part of the people behind this manipulation, said that we can expect BTC to reach sub-$1k levels.

 

[OutlawCecil]

If you feel Bitcoin is dead, you're wrong. Just like any stock, now is the time to buy.

If you feel Bitcoin is only for drug dealers, you are also wrong. News flash, drug dealers use cash too.

 

[Mister_K]

Well, sure, it will happen eventually. But this time, the apparent fundamental reason behind this is that mining power is being moved from BTC to BCH SV and it will probably never come back. Craig Wright, who is part of the people behind this manipulation, said that we can expect BTC to reach sub-$1k levels.

Mining power was long gone on BTC, it's getting worse but that is not what made BTC pop, it sheer media that made it hit ATH last.

 

[EEatGDL]

Mining power was long gone on BTC, it's getting worse but that is not what made BTC pop, it sheer media that made it hit ATH last.

Nope, it wasn't. You can see the historic BTC hash rate charts here. I try to keep my fundamentals on stock markets, cryptos, and other financial-related indicators as up to date as possible. I trade purely based on technical analysis, but sometimes the fundamentals can give you an edge or a very brief heads-up.

And yes, I'm a young man interested in video games, movies, series, hobbies, and friends with a job totally unrelated to finance. But I see the cycles of how we, the common citizens and workers, continue to get screwed over and over again. So I'm working towards a self-sustaining economic independence, in case some economic catastrophe happens again soon; even making my own retirement strategy outside of pensions and the commonly suggested instruments.

 

[Mister_K]

Nope, it wasn't. You can see the historic BTC hash rate charts here. I try to keep my fundamentals on stock markets, cryptos, and other financial-related indicators as up to date as possible. I trade purely based on technical analysis, but sometimes the fundamentals can give you an edge or a very brief heads-up.

And yes, I'm a young man interested in video games, movies, series, hobbies, and friends with a job totally unrelated to finance. But I see the cycles of how we, the common citizens and workers, continue to get screwed over and over again. So I'm working towards a self-sustaining economic independence, in case some economic catastrophe happens again soon; even making my own retirement strategy outside of pensions and the commonly suggested instruments.

The mining boom has helped BTC lift off, but the media made BTC go to its ATH in Dec/Jan. BTC will return and will break its ATH, a year or two, maybe three. No one gives a **** about any BTC alts. Obviously I might be wrong, I don't have crystal ball. For your average consumer, I still rest my case, mining is worthless unless you have farm going.

Is BTC being the sole power a good thing? Nope, BTC should die to pave a way for a crypto(s) that do everything more efficiently with better tech. So in theory, BTC dying would be great, as long as it does not take the whole crypto market with it.

 

[Mister_K]

If you feel Bitcoin is dead, you're wrong. Just like any stock, now is the time to buy.

If you feel Bitcoin is only for drug dealers, you are also wrong. News flash, drug dealers use cash too.

The power is in promising alts and their tech/goals. However, all alts are pretty much tied to BTC fluctuations which is really bad. I don't disagree with you tho.

 

[Mister_K]

How can 1 bitcoin = $100 when the value of the dollar is constantly changing? The whole idea of bitcoin is that it does not rely on any existing currency and is not controlled by any central bank.

Because people are willing to trade BTC for real life cash. Until society is truly cashless, it will always rely/work with fiat.

To answer your other question. Supply and demand. If 100 people want to suddenly sell large portion of their BTC holdings, the value will decrease. On the contrary, if strong news comes out about BTCs future and large amount of people are jumping on BTC, the price increases. At the end of the day, most people buy into BTC with fiat, hence why its strongly tied to fiat.

 

[EEatGDL]

The mining boom has helped BTC lift off, but the media made BTC go to its ATH in Dec/Jan. BTC will return and will break its ATH, a year or two, maybe three. No one gives a **** about any BTC alts. Obviously I might be wrong, I don't have crystal ball. For your average consumer, I still rest my case, mining is worthless unless you have farm going.

This is something I can't fully understand, it was commented, then manifested: if mining power was reduced, the price would fall below the year-long held support. And it happened the same day that logic was thrown out there. Yes, the ATH is not related to mining power, I'm not saying that; I'm saying that regardless of price action, mining power in BTC space has been going up (please check the link, it's a fact; saying it was long gone is completely inaccurate) and now it seems to be shifting direction, so a different year trend can definitely happen.

If Craig Wright and company can convince others to shift mining power to BCH SV, something obscene, BTC will not survive simply by its story, philosophy or else. Just check their foothold in mining, nothing small. You can do your own research about mining mafias, the statements from the people involved and repercussions.

Also think about the psychological aspect of this dump: a lot of people felt safe with the year-long support and it was pierced, to many that could be their last hope for this market. This is pure speculation, only time will tell, but that's why I have a short position in BTC and a long one today in XRP with exit stop-losses at all times. Whatever direction the market goes I'll cash it and cut the loss in the losing bet.

Is BTC being the sole power a good thing? Nope, BTC should die to pave a way for a crypto(s) that do everything more efficiently with better tech. So in theory, BTC dying would be great, as long as it does not take the whole crypto market with it.

I absolutely agree. I hate that it is the base pair for other altcoins, I haven't bought BTC in years --I cashed out my 3000% gain last December-, and now that I'm returning to that market I'm betting against it. It is slow (slower than nation-wide wire transfers), it can be more expensive than an international wire transfer. It is simply the first, not the best; and I hate the religiousness around it.