Cryptocurrencies

The case for Bitcoin’s decline

News of social media bans upon cryptocurrency related adverts are cropping up almost daily, the Easter weekend is on the horizon, #Openingday is the baseball-related top trend worldwide on Twitter and Facebook has triggered an influx of security issues that has sent the internet into overload. The crypto ads are evidently old news though, for now the focus of the everyday computer user is disabling the millions of apps they’ve signed their lives away to in the length of their social media life-span, or moreso reading the increasing amount of publications that disclose exactly how much personal data is floating around the digital sphere. In short, the brief interest span allowed for anything marginally gripping on the internet is moving at a phenomenal pace.

At the same time, Bitcoin has dropped to an 11-day low of $7,438 at the time of writing,  and the currency is not the only victim. According to Coindesk, Ether, Ripple and Bitcoin Cash are also facing the same fates of new lows for 2018 in a continual downward trend for the main cryptocurrencies in general. It’s steadily unpredictable and volatile, as always, and there are also a few theories already floating around as to why this drop is continuing for steadily.

The current value of Bitcoin appears to be exactly at the same level as it was about four months ago when the Futures Market was launched. This innovative proposal would see two massive options exchanges; CBOE, the Chicago Board Options Exchange and CME Group, dip their toes into the cryptocurrency sphere. Their entry into the field has lead some to speculate that the hype surrounding the companies heavily contributed to the spectacular surge in Bitcoin value, before encompassing it’s plummet ever since. CNN wrote an article today surrounding that very question, ‘Did Futures Market negatively affect Bitcoin’s price and the entire crypto industry?’ It’s one theory, at least.

Other publications have fluttered the idea of the ‘death cross’, apparently quite appropriate given the time of year whilst we all stock up on Easter Eggs. This term is used by traders to represent when the 50-day moving average crosses with the 200-day moving average, often coined as a negative implication that is enough to spook traders into selling more. The internet is now beginning to hear the quiet utterances of fears that the value will drop significantly lower going forward. But, these are far from cries of panic or dismay across the mainstream internet.

According to Google Trends, a method of tracing the volume of specific searches on a daily graph, the search ‘Bitcoin’ has near enough been steadily in decline since the middle of February. This information actually speaks to one of our previous articles, that four months ago signalled a correlation between Bitcoin and the dotcom bubble. In that article, one of the key trends that appeared to lead to Bitcoin’s influx was, in fact, hype – and it might be a similar case right here. The reality for the past few weeks has been that Bitcoin isn’t making mainstream headlines like it used to, especially in the midst of various other technology dramas. Furthermore, interest declines, even more, when headlines focus on losing money rather than suggesting ways to get rich quick, and the downward cycle thus continues. Maybe the bubble really is about to burst, but do we still HODL?

About the author

Tamara Davison

The Medellin-based Mancunian started her journalism career in a London startup and has since travelled around the globe covering arts and culture news, as well as climbing the Himalayas and being lost in remote places. She claims her knowledge of Bitcoin is a healthy obsession that she picked whilst studying the fascinating repercussions new technology has around the world.

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Author

Tamara Davison

The Medellin-based Mancunian started her journalism career in a London startup and has since travelled around the globe covering arts and culture news, as well as climbing the Himalayas and being lost in remote places. She claims her knowledge of Bitcoin is a healthy obsession that she picked whilst studying the fascinating repercussions new technology has around the world.