Bitcoin just dived under $6,000, its lowest level since the winter of 2017. The reason this time might be different than the reasons why Bitcoin was down several times before. Now, Bitcoin’s low volume traded is the major reason why the price of the digital currency is going down.
Many experts have predicted that the price of the “people’s currency” can go to $25,000 – $50,000 by the end of 2018, however, this starts to seem more and more difficult, as the whole cryptocurrency market is suffering huge losses.
According to press, the volume of Bitcoin is so low this month, that the price of it can go down even further. Right now, Bitcoin is trading at around $5,880 on major cryptocurrency exchanges. What is even scarier than the Bitcoin “bloodbath” is the overall condition of the digital currencies and the ICO market.
According to the Star, other coins including Ether and Litecoin have declined even more than Bitcoin, while the entire market value of the cryptocurrency market is down to $236 billion. Just for comparison, the market was worth around $850 billion at its peak.
Prominent investors, business moguls and renowned economists such as Warren Buffet and Robert Shiller have declared Bitcoin as a dead coin. Many have speculated that since the digital currency is not backed up by real value, then its own price will go down to zero eventually.
Other reasons for Bitcoin’s $4 billion trading volume and decreasing price may be owing to the crackdown of major South Korean exchanges and some regulatory “heat” in Japan, a country known for its cryptocurrency hype and positivism.
Another factor that plays a major role in the decreasing value of the overall cryptocurrency market is that around 900 coins are extinct at this point. This means that their value has either gone down to zero or have not been  used at all.
According to analysis by the Satis Group, an ICO advisory company, less than 4% of all ICOs successfully raising between $50m – $100m are working and have some value and promise. Considering the staggering number of ICOs and the massive amounts of raising funds, it is worrying that so few of those products actually go to real market and create value themselves.