2018 has not been a pleasant year for cryptocurrencies, a strong bearish market has dominated most of the first half of the year before a relative stabilization in a still bearish market.
Last week, on November 15, all major coins, except 6 notable coins amidst which were 3 stablecoins and Nasdacoin, saw major losses ranging from 10 - 20%. In the days that followed the declined continued but was much less pronounced before a new sharp decline surfaced on November 19 for all major coins.
The original sudden decline in prices came shortly after the BitcoinCash hard fork and a massive withdrawal, and exchange, of coins that happened on several exchanges. Both of those lead to a widespread panic that drove the prices down across the whole cryptocurrency market.
On November 14, the average trading price for BTCUSD was around USD 6500 while that of ETHUSD was around USD 210. In the week since the prices fell as low as USD 4318 and USD 127 respectively; an average drop of about 30 - 40% in price.
What is BitcoinCash?
BitcoinCash, BCH, was born from a hard fork on August 1, 2017, and since then upgrades its protocol through hard forks twice a year. BitcoinCash was born from the desire a part of the Bitcoin community had to have the cryptocurrency used as a transactional currency rather than the investment asset Bitcoin became, the new blockchain would also upgrade some of the old coin’s protocol and increase the block size limit of each block.
The latest BCH hard fork, of November 15, saw the appearance of 3 different factions with divergent opinions on where the coin should be headed. This then led to the cryptocurrency splitting. The resulting split further led to a hash war that shifted some of the mining power from BTC to the new BCH coins, which in turn could have affected the BTC price negatively.
What can we expect?
As the year nears its end, the sudden price has discouraged many. However, experts remain optimistic and forecast this as a mere retracement which may last till Q2 of 2019. Among the experts, Tom Lee in particular holds firm that the market will have a sudden reversal and price of BTC will rise to as high as USD 15,000 by the end of this year.
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