The price of Bitcoin managed to move up in excess of 10 percent on Wednesday. This is after going through months of low-volatile action. Now, with the market preparing for further fall, a renowned investor feels that the breakdown of Bitcoin is good for cryptocurrency market. The Chief Investment Officer at Ikigai crypto-assets management firm, Travis Kling said through a tweet that the downward trend for Bitcoin should succeed in persuading further capitulation in the names of downward market capitalization. Due to this reason, traders could very well stop to speculate on them very soon and hence put all their trust back on Bitcoin. The price crash of Bitcoin clearly reflected the overall sentiments going on in the cryptocurrency market. The closest competitors for Bitcoin are Ethereum, Ripple, Bitcoin Cash and EOS. Each of these suffered a drastic fall. Hence, it contributed towards suffering an overall loss of crypto industry.
The Chief Strategy Officer at Coin Shares, Meltem Demirors believed that all these assets did not undergo much of trading in their respective markets. Coin Shares is a crypto investment firm. Demiros said that quite a majority of projects related to cryptocurrency, which are not Bitcoin, were in some of the crisis for liquidity. She said what they notice across the segment is prices of assets are trading down 75 percent or even more than that. There have also been instances where prices have gone down by 95 percent. Demiros even said that there could be a time eventually when they might well run out of money. She even made the prediction that organizations would need to start firing off their employees as they will need to cut down their costs. As there will be consolidation, so few of these assets will invariably get down to zero.
The sell-off has got Bitcoin along with other top coins to hit their yearly lows. It could let both retail as well as the institutional investors to make an entry into space at the bottom. Similarly, there is a sentiment, which prevails that Bitcoin could well go on to form a double bottom at the level of $4500. This is particularly the reason why upside corrections look really weak and thus signal an extended period of a downward trend.