Nigeria leads the suit as one of the countries shifting out of the cryptocurrency trading. In the first quarter of this year, the value of bitcoin has dropped from N1.51 billion to N1.09. Later on, the fluctuation of bitcoin value didn’t stop Nigerian nationalists to stake N1.733 billion in the crypto market despite being warned by the Nigerian financial system regulator.
Last week the price of bitcoin was an estimated $6510 from $7400. A recent study showed a massive devaluation of Bitcoin worth $40 billion after an earlier-on increase in its value. This prompted many crypto traders to make a quick colossal selloff. The most stable period for Bitcoin has been August this year, but the current volatility in the Bitcoin market is likely to push investors away. Some of the factors stalling its value include.
A word from the Analysts:
According to ThinkMarkets chief market analyst Naeem Aslam, there has been an oversell of Bitcoin in the global market which has resulted in an intensified downward trend. He further states that as of December 2017 the cryptocurrency market hit a $ 900 billion high in value. He is optimistic that bitcoin will continue to gain value but also pinpoints that it’s difficult to identify the specific factors that have caused the drop during recent months.
Due to the transparency in its blockchain, a lot of would-be customers prefer to keep off from the technology to avoid privacy issues. A third party can know how much you have in bitcoin and also see your trading habits. This transparency may pose a security threat to a bitcoin owner.
Some financial analysts have linked the cryptocurrency market crash with the delay by Goldman Sachs in launching the Bitcoin trading desk operation. The bank stated that it had invested a lot of resources and talent in Bitcoin. The note also clarified that it’s normal for banks to delay in the IPO process as it continues to analyze the market further.
There has been an increased acceptance of the cryptocurrency globally however many people are yet to be comfortable with this trade. For one to be successful in this trade, they should ensure that they stay updated on the current news and statistics.
As a result of lacking sufficient financial and tactical knowledge regarding bitcoin, more people will remain locked out. Taking your time to do a more in-depth study will help you make a more informed choice. Seeking advice from a consultant in financial investments is essential before investing your funds in this volatile market.