Bitcoin fell below $6,000 during early morning trading Friday, making it the second time this month. Yet, one crypto trader believes it could drop even further in the next two weeks.
Bitcoin Drops to $5,835
The first six months have proven to be tough for the cryptocurrency market. At the beginning of January, the combined market cap was valued at $830 billion. Today it’s priced at $236.4 billion.
Bitcoin has also fared badly. Mid-December, the number one digital currency saw its price rise to within touching distance of $20,000. However, today at 06:09 UTC, it was valued at $5,835, according to CoinMarketCap. Since December, it has dropped in value by over 70 percent. Its price has since picked up, but at the time of publishing, it still remains under $6,000, at $5,929.
Not only that, but with only a few days left in June, the first six months have painted a gloomy picture of the market.
This drop below $6,000 makes it the second this month. Last week, the price of Bitcoin fell below $6,000 to $5,826. The drop in value surpassed that of February’s low when it fell to $6,048 on the 6th.
The drop in value follows a lack of confidence in the market. This month saw hacks taking place at South Korean crypto exchanges Bithumb and Coinrail. This resulted in the theft of $32 million and $37.28 million worth of crypto assets, respectively. As a result, market prices were impacted.
Additionally, Japan’s financial watchdog, the Financial Services Agency (FSA), issued six of the country’s cryptocurrency exchanges with business improvement orders, one of which was the country’s largest, bitFlyer.
The drop in value also comes at a time when Robert Shiller, American Nobel Laureate and professor of economics at Yale University, made the claim that Bitcoin is a “social movement” and “an epidemic of enthusiasm.”
Bitcoin to Drop Even Further?
According to Ran Neu-Ner, host of CNBC Africa’s Crypto Trader, the number one crypto is set to drop again.
Speaking yesterday on CNBC’s Fast Money, he said that “there’s more blood to come.” He predicted:
Right now my money is on the market continuing to go down.
In his opinion, there is a 60 percent chance of a crypto bear market compared to a 16 percent bull market. Consequently, he added that this means “we’re going to test $5,350” as the new low. He thinks this will happen in the next week or two.
This isn’t the first time that Neu-Ner has projected a fall in Bitcoin’s price. Earlier this month, the trader said that the cryptocurrency hadn’t bottomed in price yet. At the time he said:
We keep going down, and we’re testing new lows. Sixty-two-fifty is the next point. If it goes under that, we’re going to test 5,900.
He said that a key level to watch was $5,000.
Do you think Bitcoin’s decline in value will continue into the second part of 2018? Let us know in the comments below.
Images courtesy of Shutterstock.
