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How much more can Bitcoin value drop according to analysts?


The recent consequent dips in crypto valuations prove that this market is only for the iron-stomached. With developments like global calls for regulation, prominently by the International Monetary Fund; and, Google announcing ban on ICO advertisements, prices of Bitcoin, Ripple and Ethereum further slide, wiping off almost $500 billions of market value in since early January.

Just for kicks, this valuation drop is equal to the valuation of Berkshire Hathaway built by the formidable Warren Buffet, who incidentally is a crypto sceptic.

This estimate of the loss however is not from the high of Bitcoin in December (of $20,000), however when all 1565 cryptos listed on Coinmarketcap reached their collective high.

Largely, the smaller so called alt coins have followed the fluctuation patterns of bitcoin at large evenin the recent turbulence. And as far as the Bitcoin price slide is concerned, it seems that it has a little more to fall before making a comeback.

“When sentiment is this weak, the market is increasingly ‘fire, ready, aim’—meaning, any headline today is likely to trigger selling,” wrote Thomas Lee, Fundstrat Global Advisors managing partner.

According to Fundstrat envelope calculations, Bitcoin may have additional $37 billion to lose in near future, bringing the market cap to $99 billion. This is based on analyst statement saying “Our expectation is Bitcoin will begin to show evidence of bottoming short-term closer to $5,873.”

However not everyone is so bullish about the crypto market. Bitcoin lacks any institutional guarantee or asset backing, and is traded largely on sentiment. However, that does not indicate that there isn’t anything to gain in the short run. Short term speculations have their gains, which can help bitcoin bounce back up. However, as one Allianz Global Investors spokesperson said, “Timing this market, which is like an impeding bubble, is no easy task.”


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