Changes in Cryptocurrency Prices Are Not Due to Bear Market

Last Modified:12 May 2020 12:00:22
Changes in Cryptocurrency Prices Are Not Due to Bear Market

Following a quiet weekend, the digital currency market was relatively stable, and currently, the transactions decrease slightly over 24 hours. Last Friday, the digital currency markets surged to recover some of their recent losses; for example, Bitcoin jumped from the minimum of $3600 to about $4000. Aside from Bitcoin, other markets did not have enough upward surge to propel Bitcoin to surpass $4000 and drifted slightly downwards.

Cryptocurrency Markets Could Face Further Price Drop in Near Future

Bitcoin inability to break above $4000 caused digital currency markets to have relatively even transactions, and they could face increased downward pressure in the coming days or weeks.

Ineffective trading activities in the market may disappoint the investors and analysts who have promoted. Price predictions claimed that the digital currency markets regain much of what they have lost by the end of 2018. It now appears that the 2018 bear market will spill into 2019, which could mark a powerful start to the New Year.

DonAlt, a popular digital currency analyst on Twitter, designated his last tweet to the current price of Bitcoin and talked about how he trades with current Bitcoin price changes and said he expects the Bitcoin price will get to what it used to be $3400.

Most Bitcoin Alternate Coins, Altcoins, Will Drop about 2 Percent

Bitcoin’s gradual downwards movement has led to a drop in the altcoin markets. Ripple (XRP) is traded approximately 2 percent higher than its current price, $0.36. XRP is able to maintain all of the recent profits after its 2 percent increase from $0.34.

Ethereum has only dropped 1% over a 24-hour period and is currently traded at $137.23. Over the past week, Ethereum has had quite great increases and decreases, at first falling to $115 and then surging to the maximum of $150. Then its price dropped to its current levels.

Bitcoin Cash digital currency has dropped to about 2.5 percent, and it is currently being traded at $160. During the past seven days, the value of Bitcoin Cash had dropped to the minimum level of $144. Moreover, in the past month, it even fell to $75.

Jed McCaleb, Stellar Platform Creator: “Cryptocurrency Market Is Not a Bear Market; We Are Not Involved in the Prices.”

Jed McCaleb, the creator of the Stellar platform (Stellar digital currency), says that “despite the ongoing drop in values and investors’ discontent, the current digital currency market is not a bear market, and it is only the prices that are in decline.”

Stellar which independently forms its financial activities like Bitcoin and other digital currencies, at first operated based on the Ripple platform (XRP); however, the changes imposed on it, turned Stellar into a separate fork.

A Fork or a split creates an updated version of the intended digital currency Blockchain, in a way that two Blockchains can be run simultaneously, depending on the fork type. The soft fork is an updated version compatible with the previous one, and hard fork is an updated version incompatible with the previous one.

In an interview with McCaleb, he was asked about his long-term experience in this industry, and if he thinks that Bitcoin and Blockchain will be adapted to the financial institutions, and also about the ongoing digital currency bear market. In this regard, he only said, “in my idea, this is a joke. We don’t pay much attention to prices and this matter does not relate to us very much.” He suggested that higher prices bring more interest to space, and this provides active companies in these projects with a cash flow to continue development.

McCaleb further added that more cash flow for space is a good idea. Even projects owning the most technical qualifications, such as Bitcoin, may never see the adaption of digital currencies to financial institutions. He believes that banks will never adapt to Bitcoin.