Why is Bitcoin Dropping?
The question in the mind of everyone is if bitcoin is going to end.
The sell off has been high since the last days of the month of March.
But according to Thomas Lee on CNBC news express optimism that bitcoin will bounce back.
Bitcoin last hit these lows in early February, 2018, dipping just below $6000 before spiking to $12,000, so investors should remain hopeful that history repeats itself.
Cryptocurrencies have been under intense scrutiny this last week amid continuing dissatisfaction in how tech companies such as Facebook secure and distribute user data.
It’s hard to say what the cause of this current crash is outside of a general mistrust in technology.
The biggest crypto coin wasn’t the only one to suffer from the slump, as the whole market endures a bearish trend.
While many investors are scared this could be the end of bitcoin’s meteoric rise, evidenced in the reduced volumes on Binance, Bitfinex and Bithump, volumes on futures markets are intensifying.
Fundstrat co-founder, Tom Lee, remains confident that bitcoin will still end the year at $20,000, given the historic durability of the currency.
Analysts fully expect the market to stabilise during the mid-April US tax deadline, as investors scramble to secure cash to pay capital gains tax.
Bitcoin has been known before to bounce back from bearish rends before, and there is no reason to think it won’t do the same again.
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