“Bitcoin’s no longer boring” declares Bloomberg, before stating that analysts predict the price could fall as low as the $1,500 point, a further 70 percent drop in the coin’s price.
Bloomberg cites hedge fund founder Travis Kling saying that he “didn’t sleep well” because of the potential turmoil in wider crypto markets due to the recent Bitcoin Cash hard fork:
“There’s a small chance that, it’s difficult to estimate, that something really bad could happen related to Bitcoin Cash that could then impact the entire crypto market.”
Bloomberg Intelligence analyst Mike McGlone continued the argument, saying the recent market crash “was sparked by the pump for the Bitcoin Cash hard fork.” As Bloomberg reports, he explains that the “pump that began a few weeks ago, got the market a bit too offsides with speculative longs playing for the good-old days. But this is an enduring bear market.”
The bear market in the cryptocurrency industry has evidently affected more than just prices. Major U.S.-based GPU manufacturer Nvidia recently reported a notable decrease in sales in the current quarter, citing fewer GPU sales specifically used for cryptocurrency mining.
In a recent note to clients, Fundstrat Global Advisors analyst Rob Sluymer predicted that it will take “weeks, if not months” for Bitcoin to rebound from the “technical damage” caused by the recent price collapse.
In a separate note this week, Fundstrat co-founder and Head of Research Tom Lee told clients that he was lowering his previous end-year target for Bitcoin’s price from $25,000 to $15,000.