In line with the overall trend, Bitcoin is looking a little deflated today. After weeks of promise and weeks of potential jumps up past $10,000.00, Bitcoin seemed to be leading a charge for the majority of currencies upwards. Notably, some coins such as EOS really did benefit from Bitcoin’s optimism and the overall really healthy markets, now though, we see a very different picture with the markets sinking, Bitcoin is no exception to the decline.
We coined this, the mid-May market slip, with the bad trend continuing now though the week, it does feel as if this ‘slip’ is becoming more of a fall, the sort of fall that we don’t really want to see.
Bitcoin as a currency is considered as the market leader, not just in terms of market capitalisation but also in terms of its ability to lead the markets in new directions. Given that, at the time of writing, Bitcoin’s dominance stands at 37.2%, with an overall majority of over one third of the market, you can see why Bitcoin does have the authority to lead other currencies astray.
Moreover, Bitcoins infamy means that it can hit headlines fast, even mainstream media love Bitcoin and therefore, it is very sensitive to what happens outside of the crypto-sphere.
At the time of writing, Bitcoin is valued at $8,392.73 and is down 4.43%. With this in mind, we have to look at the possibility of Bitcoin moving down towards $7,000.00, a figure that many investors will be cautious of, given that last time Bitcoin was valued so low, it took a little while to recover.
Overall, this isn’t especially bad news for Bitcoin. Firstly, low prices can encourage new people to buy in. of course, a buy in price around $7,000.00 is still pretty high in the grand scheme of things, but given Bitcoins potential to hit $20,000.00 again, the potential return on that investment here is vast.
Bear in mind, this is not investment advice, the $20,000.00 target for Bitcoin is just that, a target. Yes, it may very well get there one day, but as it stands at the moment, the markets are making this harder and harder to achieve by the day.
Will Bitcoin lead another charge?
As the markets move down, we can’t see another bull run taking hold any time soon. The last surge occurred just one month ago, in the midst of April. Of course, this run occured in the wake of a depressive period witnessed in March so perhaps we could start to consider what will happen at the end of this current May depression, maybe, with this in mind another bull run does become a possibility.
Overall, until the markets level out we can’t be sure how Bitcoin will perform going forward, we do however know that when Bitcoin changes direction, the rest of the markets are sure to follow and that therefore, Bitcoin should be a currency you always keep your eye on, whether you’re an investor, or not.