Thursday morning, a new day but sadly, no new movements on the markets. Yesterday we saw the start of what now looks to be a major correction period occuring in the wake of a very successful two weeks for cryptocurrencies.
The correction period started yesterday afternoon. Initially, it did look to be similar to the small blip we saw in the wake of the big surge after the 13th of April, however, with the decline continuing into today and no sign of a let up, we can now confirm that this correction period will certainly outlive the last minor one.
Bitcoin has sunk from $9,720.29 (a height recorded yesterday), down to $8,858.03 at the time of writing. Again, at the time of writing Bitcoin is down 6.06%.
This is almost a $1,000.00 decline in just a day and therefore seems to be something we need to worry about. Okay, so Bitcoin’s high value means small slumps look worse than they are but really, as the currency got closer to $10,000.00 we would expect it’s value to continue to rocket up to that point, not hit a decline.
$9,000.00 was a healthy figure for Bitcoin, it suggested that the currency has recovered from the March depression and that a recovery up to $20,000.00 was now a much more realistic prospect. One thing is certain, if Bitcoin can’t maintain itself over a figure of $9,000.00 for a long period of time then $20,000.00 is essentially impossible.
We should consider that not all hope is lost, as quickly as Bitcoin can decline, it can also rack up value at an incredible rate. Perhaps this correction is inadvertently the start of the next bull run, which is expected to take a footing very soon. When this takes hold, we will most certainly see Bitcoin shoot back up past $9,000.00. The big question then, is, can it remain there?
We are seeing a lot of the news out at the moment claiming that Bitcoin is a scam. Maybe we should start to consider what effect that sort of mediation can have on Bitcoin. If it does effect Bitcoin, then how will the rest of the markets respond? Perhaps this period isn’t correction after all and maybe a combination of Bitcoins high price and these news reports of Bitcoin as a scam have contributed to encouraging a mass sell off, which has in turn had a larger effect on the market and caused this decline. This is speculation but at this stage, I think it’s something worth considering.
For now, we need to see how the markets behave and see if they can react to this drop. Going into the weekend we may see things level out a bit and hopefully, from there, we may very well see the next bull run take off. Although as it stands, this seems unlikely.
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