In December 2017, bitcoin was at its peak and crossed the $18, 500 mark. During that time, cryptocurrency experts predicted it’d cross the $20, 000 mark. Since then prices have dropped drastically to $10,000 level. Since the high that is brand new, there was a correction in the costs. This is the reason.<
The Purchase Price Impact.
Bitcoin intellectuals say a price correction was expected, as the steep increase was in reality prices are likely to come down beneath the $10, 000 level. Last year, the price increase was quite sharp. It had been mostly euphoric in character.
The price was totally driven by information announcements. This correction was expected and that I anticipate the rates are set to further come down to $8, 000 to $9, 000 amounts, said Praveen Kumar, chairman and CEO of Belfrics Global SDH, A bitcoin exchange company in Singapore, Malaysia, Bahrain, Japan, Kenya, Nigeria, Tanzania and India.
Even the new investors have started to stay miles away from bitcoin and are investing only in smaller amounts. The newcomers who’re purchasing bitcoin are trying out it with smaller numbers, compared with people who came in last year. For example, beginning of last year, the new investor came in with an investment amount of Rs5-10 lakh. But now it’s around Rs60, 000 to Rs1.5 lakh. The confidence level is also down, said Kumar.
Pros also attribute the correction in costs to the income tax department’s poll of bitcoin markets, that took place on 14 December 2017. “I think there’s a sense of stress among users. I’ve seen a lull article the income tax questionnaire. Either the users are being extra careful while trading or they’re skeptical”. In addition, when such things happen, there are users and rumors are wondering what the next position is going to be. There is also a sense of insecurity, Jincy Samuel Coinsecure, a bitcoin foreign exchange firm.