On October 11, Bitcoin and altcoins experienced a sudden cryptocurrency bear trend, bringing the value of the industry down. According to several reposts, massive sell-outs and deposit bars in several large platforms caused the situation.
Due to the unexpected downtrend of the market, a study proposed that “Bitcoin bubble” would burst in the future. Additionally, several reports pinpointed the large platform’s bar on deposits and major sell-out of coins to be the main reasons. However, the market did stabilize the day after, with cryptocurrencies performing differently.
Cryptocurrency Bear Trend Shows Bubble Bursting Is Near?
On October 11, the digital coin industry experienced a sharp dip of value, with Bitcoin losing almost 5% of its value. Altcoins experienced an even sharper decline, following the Bitcoin’s footsteps. According to the report made by Juniper Research, the analysis points out issues that Bitcoin faces at this moment. Author, Windsor Holden, stated that Bitcoin “is a bubble, and there is a strong possibility that this bubble could burst in the near future.”
Main reasons include the lack of intrinsic value, with both value and number of transactions steadily declining since the beginning of 2018. Governments’ crackdowns around the globe, per report’s findings, also had a negative effect on the Bitcoin’s adoption. The report was published two days before the cryptocurrency bear trend had taken place.
Bitfinex & Tether to Blame
Apart from the authorities, several reports made a note that Bitfinex’s actions had also taken a toll on the Bitcoin market. According to the several sources, Bitfinex “temporarily paused” all fiat deposits suspecting a withdrawal from Noble Bank in Puerto Rico.
Several pundits guessed that the Hong Kong business had used available resources to accommodate “banking needs”. Due to the perceived uncertainty, traders massively released short orders, causing a minor cryptocurrency bear trend. However, Bitfinex announced on October 12 that they “expect full trading capabilities to resume as normal within a week.” Social media pointed out that one account had moved 22,100 BTC out of the platform, pushing others to engage in shorting the coin.
Market Stabilizes the Next Day
Although falling sharply, the market stabilized on October 12 after the initial decline. Currently, Bitcoin and altcoins hover on the values reached the day before. According to the Bitfinex and CoinMarketCap’s data, it seems that cryptocurrency bear trend did not occur so far. According to several reports, due to the Bitfinex’s promises of stabilization, massive sell-out stopped, ending the decline.
Same resources maintain that it is hard to predict the future behavior of the market, due to the many factors involved. Additionally, investigations show just how volatile the market is, especially if reports regarding a whale account’s movements are true.