Bitcoin is declining lower than already record-setting lows and it has many people considered. On Monday, BTC’s trading volume increased and a sell-off amped up as well. These events led to BTC to decline under $5,000 and some have gauged that BTC had oversold itself. Right now, the value is at $4,800 a piece, making its market capitalization at $85 billion.
According to Asia Pacific Trading analyst Stephen Innes, who made the following comment to MarketWatch,
“The digital token fell as much as 6.3% to $5,202, having plunged through a critical resistance level Wednesday after a period of relative tranquility.”
There are a number of beliefs as to what is driving the decline. Some are pointing to BitcoinCash’s hard fork and others are looking at bitcoin’s institutional liquidation, ICO collapse, and the decline of the stablecoin zone. And then there are those who are going even father. For instance, Innes discussed with Aaron Hankin of Market Watch that it is the bearish approach that many are taking to BTC and that a continued bear stance could lead BTC to decline to $1,000.
Innes further explained that his position is based on his belief that regulators, bankers, and centralized authorities will continue to push against the asset and its mass adoption. Such centralized entities are concerned that cryptocurrency and blockchain technology will eliminate need and interest in their services. He continued that regulation would lead to a burst in “crypto’s balloon, as the $5,000 cliff edge is approaching, fast.”
Justin Litchfield of ProChain Capital also commented concerning the decline in crypto, stating,
“The sell-off is related to enforcement, which is almost certainly underway. Projects are being made to return investor money, which after having spent a ton of marketing their $100 million ICO no a lavish party-filled road-show that was the norm for this vintage of ICOs, will be tough.”
Essentially, it looks like that many are worried about many things concerning crypto and at this point, it is difficult to determine which is the driving force behind its decline in value.