Bitcoin hit rock bottom hard in early June when its value dipped to $6,000. And it’s unfortunate that there hasn’t been even a small surge since. The Bloomberg composite pricing currently show the value as $5,887, which is about 6.2% less the value recorded in June.
A report published by CNBC suggests that the decline since June could be the worst we’ve seen in the Cryptocurrency market this year.
The world’s largest digital currency by market value tumbled as low as $5,900 at around 10 p.m. ET, and was down around 4 percent, according to CoinDesk index data, which tracks prices from several exchanges.
The cryptocurrency’s price is close to its lowest point of the year. The lowest level of 2018 was reached in June 18, when it retreated to $5,785.
Despite the currency hitting its all-time low for the first time this year, Cryptocurrency advocates are hopeful that real tractions are yet to come.
According to Bloomberg, the value of Ethereum, one of the currencies in the crypto market, has also been on the decline.
“The big story in the market today is the huge weakness in Ethereum,” Timothy Tam, chief executive officer of CoinFi, a cryptocurrency data analysis company, said in a phone interview. “Bitcoin has held up relatively well versus Ethereum. It’s still quite weak versus the U.S. dollar.”
“ICOs that have raised a lot of money are really feeling a lot of pain” as their crypto holdings lose value, Tam said. Ether has tumbled 39 percent this month, while Bitcoin has dropped about 22 percent.
In fact, the capitalization of Ethereum in the Cryptocurrency market now stands at 14 percent, which is quite low compared to the last year’s 32% of the capitalization of the crypto market.
According to Express, the drop in the value of Cryptocurrency is strongly linked to the uncertainty over a potential Bitcoin Exchange Trade Funds.
The cryptocurrency market has tumbled by more than 25 percent in just one week, thanks to uncertainty over a potential bitcoin ETF.The SEC has delayed their decision to approve the ETF, causing a significant drop in price.Before the delay was announced, the market cap stood at $255 billion, which has now dropped to less than $191 billion.
In their report, the rise is less than the rate of the decline in value and the value could go even lower against many traders’ expectations.
We are seeing a bigger downward trend, which is scary as ever. Again, the crypto market sure seems to be slipping lower and lower. Until the Securities and Exchange Commission decides to improve the ETF, the value of the digital currency may go down even further.