FX.co ★ Five reasons why bitcoin prices won't rise in 2018
Five reasons why bitcoin prices won't rise in 2018
There are enough predictions about the price of the most popular cryptocurrency for the current year. Some analysts strongly believe in the positive development of the scenario, others are more negative and do not see prospects for Bitcoin. We propose to get acquainted with the opinion of specialists who deny the possibility of further growth of the cryptocurrency No. 1.
Bitcoin mining is unfavorable
Some experts consider the lack of profit during mining as one of the reasons that prevent the further growth of Bitcoin prices. Earlier, the mining of cryptocurrency No. 1 was regarded as a profitable business, but at the moment many miners who failed to upgrade their equipment and sell bitcoin at the peak of its price are forced to get rid of tokens. Analysts say, many of them also have to sell equipment as well.
Decrease in trading volumes
According to experts, at present, a significant drop in bitcoin trading volumes is recorded on the crypto market. The current volumes are much lower than the levels observed in the winter and spring of 2017, which makes the No. 1 cryptocurrency trading unfavorable.
Market participants lose interest
Most market players lost interest in digital currencies. Many of them consider investments in virtual assets unprofitable in the short and long term.
Speculations by institutional investors
The unstable situation in the virtual currency market led to speculative actions on the part of institutional investors. As a result, the work with short, and long positions with respect to the cryptocurrency No. 1 became unprofitable for the market participants.
No Bitcoin ETF
At the moment, the issue of launching funds that work with stocks for bitcoin and other digital currencies remains open. Approval from leading regulators has not yet been received. As a result, investors found themselves in a "suspended" position, not knowing if it was worth investing in the cryptocurrency. This led to stagnation in the digital assets market, analysts emphasize.
