It’s been a rough week for Bitcoin’s value
Bitcoin’s value has struggled this week, following an onslaught of bad news.
It looks as though the worst of it may have now passed, but it’s still not out of the woods yet.
Bitcoin’s value has fallen by roughly 20% over the last seven days.
As prices fall, it has now shed most of the positive gains it had made over the last couple of weeks.
At the time of press, Bitcoin was trading at roughly $8,755, according to the Coin Thud live price charts.
Earlier today, the price dropped as low as $8,370.80, CoinDesk’s Bitcoin Price Index (BPI) figures show.
Bitcoin was still down by around 19% from the same time last week, even after this modest recovery.
Despite losses in the last couple of days, analysts predict that most cryptocurrencies will see substantial gains over the coming weeks.
Bitcoin’s ‘Trifecta Of Bad News’
Mati Greenspan, the senior market analyst for social trading platform eToro, said in a statement:
“From a fundamental standpoint, the market is still processing a trifecta of bad news.”
“The SEC announcement, the Binance incident, and the MT. Gox seller have all weighed heavily on the price”
Neelabh Dixit, co-founder of digital asset management firm Cryptomover, said the effect these developments in the press had were “exaggerated.”
He asserted that FOMO (fear of missing out) largely dominates the cryptocurrency markets.
Mt. Gox Sale
Kirill Radchenko, CEO of Paygine, says the sale of more than 35,000 BTC by the Mt. Gox trustee played a significant role in the drop in Bitcoin’s value.
Radchenko emphasized that more than $1 billion worth of the trustee’s remaining Bitcoin will also be sold-off over the next few months.
According to Jeff Koyen, CEO of 360 Blockchain USA, flooding the cryptocurrency markets with this much Bitcoin will “tank the market,” adding:
“That’s probably why we’re seeing a sustained, simmering panic.”
Bullish Long-Term Outlook
Although some analysts highlighted the negative impact on values in the short-term, the majority of observers see a positive outlook in the long-term.
Many are now predicting that regulatory progress will help to strengthen the cryptocurrency markets in the long-run.
Matthew Newton, an analyst at eToro, said this level of scrutiny is to be expected and that it should be embraced, saying:
“Cryptocurrencies are still in the early stages of development. As the market grows, regulatory scrutiny is to be expected.
“Appropriate regulation should ultimately help promote best practice and afford protection to the consumer.”