Cryptocurrency markets lost more than 40% of value in November amid uncertain business environment and traders concerns for the complete crash of crypto markets. Bitcoin price has experienced a huge selloff in the final fifteen days of last month; the flagship cryptocurrency plunged from $6500 to $3500 before stabilizing around $4000.
The rest of the market has also witnessed a similar trend. Ethereum, Ripple, Bitcoin Cash and all the rest of the top ten coins fell to the lowest level since May 2017.
The total cryptocurrency market cap fell to the lowest level in past sixteen months of $120 billion in November, a drop of 40% from previous month and a decline of 80% from the all-time high that it had achieved at the beginning of the year. Consequently, November was considered as the worst month for cryptocurrency markets in the past seven years.
The selloff was initially triggered by the trader’s disagreement over the hard fork of bitcoin cash. The panic for the complete crash and SEC crackdown on ICO’s are among the factors that added to the worst bear trend in crypto markets.
A Period of Consolidation
Cryptocurrency markets stabilized slightly in the past week after a massive collapse. Bitcoin Price bounced back to $4300 level after hitting this year low of $3500; the largest coin continues to trade in $4000 over the last week.
Traders believe that uncertainty remains high. The market hasn’t been showing any positive signs for the bull-run; they don’t expect bitcoin price to consolidate around $4000 for the long-term.
Bitcoin (BTC) Price Today – BTC / USD
CEO of Genesis Global Trading, Michael Moro said, “It’s unclear if this is a ‘bottom’ or a brief period of consolidation before next move down, but buyers are still maintaining some cash on the sidelines in case it does go lower, before adding. While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin”.
Here’s What to Expect in December
Some traders think that the market has hit bottom and it is likely to stabilize in the days to come; they expect a Christmas rally for bitcoin price and the rest of the cryptocurrency market. The potential investment from institutional investors and the entrance of prominent financial institutions are catalysts for the expected bull-run.
Sonny Singh – the chief operating officer at BitPay, is among the bulls who are optimistic about the future fundamentals of bitcoin price. She claims bitcoin adoption and the launch of several new products could help in enhancing investors confidence. Indeed, she expects bitcoin price to trade around its previous all-time high in the following months
Explaining the stance, she stated: “If these traditional incumbents launch their products as expected you’d see a price of maybe around $15,000 to $20,000 (£11,691 to £15,586) per bitcoin by the end of next year, but that depends when these products are launched because nothing moves fast in fintech.”