The most infamous digital currency in the world, Bitcoin has seen its value steadily decrease in 2018. After its surge in December of 2017 to over $20,000, it has continued to drop to its recent level of $8,000 amidst concerns of regulatory actions, theft, and market manipulation.
Has the bubble finally burst for Bitcoin and other cryptocurrencies like Ripple and Ethereum who have also seen their prices drastically reduced as of late?
To answer that question it might be helpful to take a look at the present happenings of the cryptocurrency market and then read into the long-term signs indicated by their current conditions.
Past 24 Hours
In as little as 24 hours, the overall digital currency market has lost half of its value. In any other financial market that would definitely spark talks of a major bubble burst and cause widespread panic similar to the sell-off which is being seen right now in the cryptocurrency world.
Bitcoin alone has fallen to over 14% in the past day and the average decline of the other major digital currencies has equated to roughly 20% over the same timeframe.
In fact, no one cryptocurrency in the top 100 digital currencies has seen any upside in the past day, which seems to indicate a slowdown and sell off of the number one trading and investment vehicle of the past year.
Signs Of A Burst
The present signs definitely seem to be affecting the long-term outlook of this supposedly worldwide currency of the future.
Cryptocurrency analysts seem to think that the price action since the beginning of this year indicates the fears investors are currently having towards Bitcoin and other digital currencies in regards to global regulation talks.
South Korea and China have already established cryptocurrency policies in their countries in order to limit criminal activities and protect investors. While that may seem like a good sign for the future of digital currency markets, the short-term ramification has been a severe depression of value across the board for almost all cryptocurrencies.
Financial markets, be they regulated or not, do not like unpredictability and that is what is being seen with the recent regulation news by many Asian countries like South Korea, China, and India. It is not solely these countries actions that have sparked the sell-off but the ripple effect it might have on other countries across the globe to follow suit.
Investors seem to agree with digital currency analysts that state that the largest bubble ever seen in financial markets to date is finally bursting. With 20 other countries also joining in on the regulatory cryptocurrency bandwagon the doom and gloom will likely continue to replace the optimistic, although maybe somewhat speculative, future of Bitcoin and other digital currencies.
This, however, does not indicate that the legitimacy and future of digital currencies are at an end for stronger regulations may be bursting the bubble but could eventually stabilize the price actions of cryptocurrency making it a long-term investment vehicle for long-term investors and not short-term traders who are looking to make a quick buck.