On Wednesday of this week, the cryptocurrency market saw a sharp decline across the board. Many digital coins saw a huge drop in price, including some of the more popular cryptocurrencies such as Ethereum, which at one point hit a value of $210, and Bitcoin, which dropped down to $6,300. There was no real reason for this drop, which was not a promising sign for the digital currency market.
Despite the drop, some investors remained hopeful that since the drop-in price was simply an irrational sell off, then a bounce back in price would surely occur. Yet we are now a few days after the event and we are yet to see much change when it comes to value. The market is still a long way from recovering, leading to many people questioning if a rebound will occur at all.
Despite the lack of rebound, there are many that believe that it is still imminent. The market is a volatile one, and investors knew this before getting involved, so known that large price swings are a common occurrence and are to be expected.
Brian Stutland of CME is one of many who believe that a bounce back is just around the corner. He claims that the world’s largest cryptocurrency of Bitcoin is going to surge back up to $7,250 at some point this month. He believes that the drop is do with Goldman Sachs backing out of its plans to build a Bitcoin trading desk, although Sachs claims that this was simple fake news. He also believes that the market hit an all time high in December last year, and it is going to take a bit of time for people to become accustom to the reality that it might not reach that point again.
It still may take some time for the prices to settle back to what they once were, and the hope is that over the coming year the online retail industry will be pouring money into the currently declining market of cryptocurrencies.