Published On: Tue, Sep 18th, 2018

Bitcoin price drop: Will Bitcoin hit $3k – Is the rise of Bitcoin and cryptocurrency over?


Bitcoin started this year on a high of $14,112 (£10,745) and reached a peak of $19,535 (£14,874) on December 17.

However, since the beginning of the year, it has suffered a significant loss and is currently trading at $6,265 (£4,768) on Tuesday, according to industry site CoinMarketCap.

Bitcoin is down three percent on a 24-hour basis.

The cryptocurrency has lost 50 percent of its value since the start of 2018 and 60 percent of its value since the high in December.

The Business Insider recently reported Goldman Sachs was putting plans for a crypto trading desk on hold caused Bitcoin to drop 5 percent and the top five cryptocurrencies by market cap to fall by more than 12 percent.

However, the news was disputed by Goldman Sach’s CFO Martin Chavez who described the reports as “fake news.”

Rumours the investment bank was setting up a crypto trading desk to make markets in digital currencies, such as bitcoin, have been circulating since December 2017.

Regardless of whether the news was true or not, Bitcoin’s exchange rate against the dollar fell 6 percent to $6,934 during Wednesday’s trade when the news surfaced.

But is the cryptocurrency likely to fall even further? These industry experts give their opinion on the volatile coin.

Is the rise of Bitcoin and cryptocurrency over?

Kevin Murcko, CEO of crypto exchange CoinMetro, said he doesn’t expect Bitcoin to drop to below $3,000 because its price is dependent on the cost of Bitcoin mining.

He said: “Mining carries a cost, and large-scale miners won’t sell below that cost.

“Bitcoin mining is currently profitable down to a price of about $3,000 per Bitcoin, that price represents an approximate market bottom.”

Mr Murcko said for the cryptocurrency to experience a peak, there needs to be more real-world use cases of businesses and people using the underlying asset.

Erica Stanford, co-founder of CryptoCurrencySimplified, told Express.co.uk: “It’s unlikely to drop any further. Bitcoin has been going down since January. Many individuals have already sold out.

“Institutions have had every chance to drop the price down further had they wanted to crash Bitcoin even more.

“There has been strong support at around $5800 – every time Bitcoin has gone below $6000, it had been brought straight back up.”

Mike Rymanov, CEO of Digital Securities Exchange (DSX) told Express.co.uk the market will recover quickly from the Goldman Sachs news and said it will serve as “a call for clearer and tighter regulation.”

He added: “Over the coming months, I expect we’ll see the market continue to attract more professional players which will subsequently lead to much more civilised market conditions, and in my opinion, there still remains a real possibility of hitting the £10,000 mark by the end of the year.

“Furthermore, we expect other financial institutions will continue to look for ways to provide robust custody solutions for cryptocurrencies.

“Once these come into play, those investors who are currently sceptical or who have security concerns will be able to invest securely.

“In the medium to long term, it’s likely this will add to the consistently upward trend as we head towards £20,000, however when, and if, we reach that point is difficult to predict.”



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