Bitcoin prices went under $4K yet again, in a December that started with a market pullback. Several other cryptocurrencies have also lost some value. This marks the start of December, a month that is decisive for cryptocurrencies. Last December cryptocurrencies went through the roof, reaching levels of $20K, levels that today seem a dream.
Bitcoin Prices Under $4K
Bitcoin prices are today as volatile as they were all last month, with bitcoin losing more than 5%. It reached less than $4K, a thing that scares investors that think the worst can still happen. As always, altcoins follow the lead of bitcoin and also fell dramatically at the start of a month that will define the cryptocurrency price outcome.
EOS was the most beaten cryptocurrency, reaching double-digit losses and plunging to $2.63. The market attempted to make a breakout but it lacked the strength to do so. However, Bitcoin Cash and Bitcoin SV, the two currencies that were protagonists of the hard fork, showed an advancement. They integrated with the other cryptocurrencies, a sign that shows the instability product of the hard fork has ended. For some analysts, this was the event that made the market plunge last month, causing huge selloffs due to the uncertainty of what was going to happen with the funds.
Not So Merry Xmas
Analysts like Tom Lee from Fundstrat, and Mike Novogratz from Galaxy Digital, have predicted that even with this bear market, bitcoin will rise to over $9K (for Novogratz) and to $15K (for Tom Lee). But at this rate, it is difficult to believe that these levels could be reached. Instead, some analysts are still rooting for bitcoin to go to $7K levels.
The truth is that it is difficult because bitcoin has stalled in the border of the $4K levels, and it seems it will remain there for the time being. Bitpay’s COO Sonny Singh declared to Bloomberg that the price won’t move this year last week. It seems that the demand for bitcoin is simply not there. The obsession with bitcoin that hiked last December is just not there anymore.
Institutional investors were expected to kick in this December and shoot up prices with real demand from institutions. But Bakkt and fidelity, two of the most serious companies that announced the launch of their cryptocurrency operations this month, delayed them without announcing the reason. Most likely the bear market scared them, and they decided to start fresh next year with the market in better form.