They stated that 2018 has been quite a volatile year for Bitcoin, falling from over $20,000 in December 2017 to sustaining under the $7000-$8000 mark post the first fiscal quarter of 2018.
Reports show that despite the bearish market, Bitcoin is undergoing its best quarter even though there is still a month left. At the time of writing, Bitcoin was trading at $7366.72, rising at a minuscule rate of 0.01%. The cryptocurrency held a market cap of $127.07 billion with a twenty-four-hour volume of $4.46 billion. The panelists on the discussions then compared the rise and fall of Bitcoin with the United States dollar, pointing out some stark similarities between the two.
According to the reports, at the beginning of the year, after the spectacular bullish run of December 2017, both the dollar as well as Bitcoin was trending lower than expected. The dollar and BTC both acted as a couple, reflected in their consistent price drop. The current financial situation, according to the cryptocurrency experts, is the first time that both the currencies are at the same fifty days moving average. They have also gone ahead and stated that during a dual rise like this, only one currency usually survives.
The on-ground situation shows that the USD is bullish right now which has been following a consistent pattern, and experts believe that a bearish trend is just around the corner. Mike McGlone, Bloomberg’s Senior Commodity Strategist, stated that what we have right now is a bearish market and holders need to sell rallies during a bear market as always.
He pointed out to Bitcoin charts that showed that the prices as an overall commodity are falling but there is a spike in the Bitcoin shorts. This was evident just two days back when there was a massive shoot up of Bitcoin Shorts on Bitfinex, one of the leading Mercantile exchange platform. On 2nd September, Bitcoin Shorts rose from 22050 to 33276 within four hours on the platform.
Another major factor affecting the Bitcoin price is the decline of emerging markets, according to reports. McGlone went on to say that the market is going to provide diminishing returns and in terms of futures, holders of Bitcoin should sell at the $8500 mark. The financial expert added that Bitcoin may start to decline and might actually fall to $5000 before which people have to sell their holdings. Experts from the cryptocurrency have predicted different situations with some opting to go for a moonshot bullish market while others are stated that the market is on a slow decline.