Bitcoin (BTC) price continues to trade in the narrow range over the last couple of days; BTC price plummeted to $6600 mark yesterday before paring some losses in Thursday trading. The price of the coin has traded in the $6500 to $7500 range since the start of this month, due to the tug of war between bulls and bears. Bitcoin price trades around $6800 at present, down 12% in the last seven days and down almost 65% from its all-time high.
The slump in Bitcoin price has created a broader selloff in crypto markets. Ethereum (ETH) and Ripple (XRP), the second and third largest crypto coins, have also been erasing gains they had generated during fiscal 2017. ETH and XRP coins are currently trading at the lowest level since last November.
Is it a Crash or Correction?
Cryptocurrencies are significantly speculative investments that can gain or wipe billions of dollars off the market in only a few hours. Analysts are at odds on how the cryptocurrency markets will behave in 2018. Bulls are seeing the downside volatility as price correction while bears are expecting Bitcoin price to extend the downtrend and crash entirely in the days to come.
Thomas Lee, head of research at Fundstrat Global Advisors, expects bitcoin price to hit the $20,000 mark by the end of the second quarter and he predicts BTC price to stand at around $25,000 by the end of the year.
Few other analysts, including Steve Bellotti of Digital Currency Holdings, expects bitcoin price to create further price correction before beginning to stabilize in the second part of this year.
“So I think the market is much safer to enter into today. But we may not be at the extreme bottom yet,” Steve Bellotti said.
Bitcoin price has been declining steadily over the last month after regulators started implementing initial trading guidelines. Several countries, including Japan, Australia, South Korea and the United States, has announced trading rules for crypto markets to rule out the possibility of money laundering, scams and illegal practices.
Bears, however, predict cryptocurrency markets to collapse completely. They believe that bitcoin has no underlying value and the most of its trading volume comes from illegal activities. Major analysts like Warren Buffett, Goldman Sachs, and Bill Gates has denied investing in bitcoin and other digital currencies, and they warned investors that cryptocurrencies could have a bad ending.
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