''Some cryptocurrency will maybe burst, but it won’t happen to the whole market''
Experts about causes of the recent Bitcoin rate’s fall, speculations in the cryptocurrency market and possible end of the bubble
The Bitcoin rate has shown a record fall by losing 28,89% a year. Disappointed expectations of market players from SegWit2X hard fork and followed flow of investors to Bitcoin Cash are called the main reasons for what happened. Realnoe Vremya surveyed experts in blockchain and cryptocurrencies who told whether there really were speculations in the market last week, if investors should get ready for the end of the bubble and what people who invested in Bictoin should do now.
''People who make money from speculations earned here''
The Bitcoin rate has fallen by 9,5% since Friday's evening on 10 November. And if we count from Wednesday when a new record was set ($7,800 per Bitcoin), the cryptocurrency's price reduced by 29%. However, we need to note that the Bitcoin rates have already stabilised after the collapse and now they are sold at over $6,000.
''Frankly, Bitcoin hasn't fallen. Actually, it has rapidly grown, but according to market laws, a fall and price correction follows a rapid rise. If we carefully follow the rate, we'll see that it exceeded $5,000 about 1,5 months ago, then it stabilised to $4,200. Then everybody became excited because of the news that guys from Bitcoin were going to make the next fork, everybody started to suddenly purchase Bitcoin, and a deficit appeared. In addition, when demand grows, price increases, of course. This is why Bitcoin suddenly went up, and then the expected stabilisation happened,'' describes head of a project of blockchain technologies, co-founder of Future In Apps Lenar Mukhametzyanov.
We need to pay attention that quite curious movements happened in the other cryptocurrency simultaneously with Bitcoin rate's fall — Bitcoin Cash. Its price has increased by 40% since Friday and reached a record $2,500. However, it didn't last for long – it fell to $1,300 by Tuesday.
Mukhametzyanov explained the simultaneous fall of Bitcoin and sudden growth of Bitcoin Cash the following way: many people bought Bitcoin just recently and expected SegWit2X's performance (Editor's Note: proposals for boosting bitcoin's transaction capacity). Supposing that the price for cryptoasset would grow many times with the launch of SegWit2x, many people waited and bought Bitcoin. However, the cancellation of SegWit2x was announced last week, and it became the catalyst for the flow of investors to Bitcoin Cash.
Meanwhile, Bitcoin evangelist Konstantin Nikonov sees Bitcoin Cash was artificially pumped up there. ''Augmentation of this cryptocurrency is obvious. Media people with exchange lost in 25к BTC added fuel to the fire.'' The co-founder of Future In Apps completely agrees with Nikonov.
''If we look at exchanges, the share of sales and deals with Bitcoin Cash has even gone ahead of very Bitcoin, and it can be done only artificially. This is why it's obvious that it was pumped up and people who make money from speculations earned here. In any case, demand was created, investors invested in Bitcoin Cash, thanks to which this currency is now lower than $1,200. It is a very serious growth – this currency cost no more than Ethereum just 1,5 months ago,'' Lenar Mukhametzyanov reminds.
''The top 10 cryptocurrencies in the next 5 years will look completely different''
Of course, seeing news headlines shouting about Bitcoin rate's 30% fall, somebody could ask: ''Won't the bubble burst?'' Realnoe Vremya asked experts whether those who invested in Bitcoin should be ready for the worst after the recent fall in the rate.
''This market is volatile, so such statements [that the bubble will burst] will appear constantly. Some cryptocurrency will maybe burst, but it won't happen to the whole market. There won't be any situation like with the .com bubble,'' organiser of the course of decentralised Ethereum applications at University of Innopolis Aleksandr Gryaznov thinks. ''In general, I think the changes in the market are positive and it's a normal process. It is natural to create branches in the blockchain. I think the top 10 cryptocurrencies in the next 5 years will look completely different.''
The co-founder of Future In Apps thinks they don't need to speak about the end of the bubble and forecasts new falls of Bitcoin: ''A possibility to mine Bitcoin Gold has appeared since the beginning of the week. And we don't know how the market will react to this currency and how much it will really cost. I think Bitcoin is going to have several collapses: when a new currency enters the market, it is mined, its quantity on exchanges grows. Consequently, part of investors is likely to switch to Bitcoin Gold, and Bitcoin will fall in price.''
In Konstantin Nikonov's opinion, those who invested in Bitcoin for a short term and stock traders should worry in this situation: ''The latter pumped up the price and know why it's happening so. As usual, there will be losers and winners. In general, I've repeated two rules of personal calm many times: 1. Do you invest? Don't expect income tomorrow. 2. Do you use it? Do it quickly.''
''People who invested in Bitcoin should just wait because miners have not gone anywhere, and the deficit that Bitcoin was made up (this is why the Bitcoin has changed). In any case, Bitcoin is a locomotive. First of all, this cryptocurrency is brought to test platforms, and all tests are done with Bitcoin. So it won't go away,'' Lenar Mukhametzyanov concludes.