BITCOIN AND ETHEREUM PRICE PLUMMETS DUE TO CRYPTO-WAR
If you’ve ever looked at cryptocurrency price charts, you know that these assets are volatile.
That didn’t change in the past 24 hours.
In fact, the two major cryptos, Bitcoin and Ethereum, have become even more volatile. Their prices plummeted by 25% and 45% respectively since their recent ATHs.
As you can see, the Bitcoin’s major support level remains intact signalling strong opposition.
However, that’s not the case with Ethereum. Does that mean that Bitcoin’s main rival has still yet to earn its stripes?
There’s a reason for the price drop, though.
Almost all cryptocurrencies have entered a downward spiral because of the Bitcoin dispute. The global market cap had dropped from $115 to $75 billion since June this year.
That’s a massive drop that plants a seed of uncertainty even for the hardcore speculators. Bitcoin’s value drop will cause other cryptos to drop as well.
The only difference is that they will drop further down.
The Bitcoin’s developers vs miners rant is the main factor in driving all prices down.
It’s not just about Bitcoin anymore. These two groups are literally hindering all other altcoins in terms of the raw price.
As much as the Bitcoin’s developers and miners have helped to grow the cryptocurrency buzz, popularity and use, they are now reversing it by being stubborn.
For those who don’t know, Bitcoin is undergoing a change in its code due to the increasing congestion in the blockchain.
The problem is that transactions are taking a long time to process and they cost more. That’s due to blocks getting fuller because there’s more demand for transacting in Bitcoin.
Here’s a graphical representation of the upcoming timeline:
Whilst nothing is certain when it comes to high volatility assets, we can be sure of one thing in this scenario:
It’s highly unlikely that any major cryptocurrency will be reaching new all-time-highs until the Bitcoin dispute is resolved in the upcoming weeks.
The price will most likely go sideways and consolidate or keep dropping and testing even farther support levels.
What’s your opinion?