Bloomberg analysts estimate that this situation that we live in the start of a crypto-winter. According to them, the bitcoin price (the original cryptocurrency) can go even lower. This due to a combination of factors going from hard forks to chipset makers performance. Without a doubt, it is hard to live in the cryptocurrency world.
Bitcoin Price Bear Market
After weeks of having endured a stability that left some traders perplexed, crypto has returned to its volatility. Falling more than 12% in a day, now the forecasts have changed for many of the cryptocurrency experts that handled overly optimistic predictions.
While some analysts do not have a clear answer for the actual bear market, others speculate about it. Some think that this volatility has been caused by the bitcoin cash hard fork. A hard fork always generates expectation, because the two resulting chains offer the same amount of coins to traders. That is why always before a fork there is a strong demand. But the bitcoin cash hard fork is a hostile one and has touched even bitcoin.
This whole confusion triggered a selloff that sank the price to sub $6K levels, leaving some miners already operating at a loss. Despite this, traders are happy.
Arthus Hayes from BitMEX had said last month that volatility is the worst enemy of the market because it makes it monotone. Well, volatility has returned, and traders will start to move those contracts again.
NVIDIA Woes Also Worrying
But that is not all. Also, NVIDIA, the most important GPU chipmaker, took a big hit in their quarterly results due to the sorry state of the cryptocurrency market. They were unable to calculate the real demand of their chips without mining related demand. Unluckily, that failure lead to them to accumulate inventory, and now they GPUS that won’t sell at the suggested price.
The poor performance that NVIDIA exhibited is a cause of the lack of demand. But it can also cause cryptocurrency a bad reputation among buyers. Potential buyers that hear that cryptocurrencies are causing tons of losses to a behemoth chipmaker are not likely to invest in cryptocurrencies.
All of this makes Bloomberg analysts believe that bitcoin price will gravitate towards $1500 in the near future, something that is vastly different to what other analysts have predicted. Recently, Tom Lee from Fundstrat, slashed its own bitcoin forecast from 25K to 15K, due to “internal crypto conflicts”.