Cryptocurrency has taken a nosedive this year, and there seem to be no hopes in the coming year too. If we go by what Mike Novogratz, Galaxy Digital founder says, there is no ray of hope for cryptocurrency.
According to Financial Times, Novogratz predicted that financial institutions would transition from “investing in cryptocurrency funds to investing in cryptocurrency proper in the first quarter of the year.”
The idea behind this prediction, he clarified, was that cryptocurrencies would flip next year and that is when the prices will rise.
Bitcoin slides further, crashes by $35,000
What Novogratz said strikes a chord if we consider the status of Bitcoin, extended losses even further, sliding to a record low of under $35,00 since September 2017. According to the CoinDesk, Bitcoin has lost more than 35% of its value. According to reports, this is its most significant drop since April 2013 when the currency slid by more than 44%.
Evidently, the recent downturn began in November when Bitcoin fell abruptly below $6,000. Nothing seems to have changed for the world’s largest cryptocurrency as it continues to slide further. The cryptocurrency had been trading at $6,400 after a volatile year, even when the major US stock markets fluctuated.
However, experts believe that post-Thanksgiving, and since the last holiday season, things have been changing, thanks to new investors. The currency climbed to almost $20,000 ahead of Christmas.
The values dipped even further during the weekend, accounting for a drop of over 75%. In fact, some of the significant cryptocurrencies XRP and Ether were down by as much as 12 and 9 percent respectively.
This new development, in a way, has triggered losses in sale and traders are now seen contemplating stopping sale because of the dip. According to a news report by Bloomberg, regulators are currently investigating if the slide was due to market manipulation. In fact, the US Department of Justice is said to be investigating whether Tether, a controversial cryptocurrency, backed by US dollars was used by the traders to prop up Bitcoin.