Bitcoin slumped to a new yearly low of £2,556 ($3,218) on December, following a significant sell-off. The flagship cryptocurrency briefly showed signs of a bullish bounce on Monday but has been in decline ever since, hitting the bottom a couple of hours ago before recovering a little. Bitcoin has roughly halved in value since the same time in November, when it was trading closer to £5,082 ($6,400), leading to concerns for its future.
As Bitcoin declined in value, other cryptos including ethereum and bitcoin cash followed suit, experiencing losses against the USD.All is not well in crypto investor land
Bitcoin cash has in fact dropped 25 percent in value within a week, despite haemorrhaging nearly half of its value over the previous seven day period.
Most major cryptos have dived by 50 to 80 percent against bitcoin over the last two quarters, which fell by nearly 85 percent alone.
For BTC to fall by a similar amount as Ethereum, it would need to lose an additional 72 percent from its current price.
Analysts believe a fall to the new psychological level of $3,000 (£2,382) which is looking increasingly likely as markets lose confidence.
Total cryptocurrency market capitalisation has currently not quite hit a new low at the moment but is close to it.
And this coming weekend could see prices plunge below the $100billion (£79.5billion) barrier.
The near future looks certain with few catalysing factors to reverse this trend.
This has seen industry insiders pinning hopes on institutional heavyweights such as Bakkt and Fidelity launching eagerly-anticipated products soon.
But the mass sell-off has shaken the confidence of all but the most faithful.
A further drop for Bitcoin is unlikely to faze the people that are here for the long run.
Barry Silbert, founder and CEO of Digital Currency Group said that other venture capital firms have started to renege from deals with companies in the crypto sector.
Silbert said: “We’ve seen half a dozen fundraising deals fall apart over the past month after the lead pulled out. All is not well in crypto VC investor land Good time to remind founders that a signed term sheet does not equal cash in the bank.”
In other news, Google’s artificial intelligence platform briefly briefly described bitcoin as a “collapsed economic bubble” when the term “bitcoin” is Googled.
The card reportedly explained Bitcoin as a “form of electronic cash” and went on to note that since its all-time high in December of last year, the cryptocurrency has lost 82 percent of its value.
The Google card read: “Bitcoin is a cryptocurrency, a form of electronic cash. The bitcoin market is widely viewed as a collapsed economic bubble as the price fell by 82 percent in the year ending December 2018.”
Google linked back to Bitcoin’s Wikipedia page as a source for what was in the card, but the page only refers to “the possibility that bitcoin is an economic bubble” in its criticism section.
Although the page was edited within hours, the issue calls the influence of Google’s artificial intelligence into question.
The card currently describes Bitcoin as a “decentralised digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer Bitcoin network without the need for intermediaries.”