It looks like we have clearly not discovered the bottom of the crypto bear market yet. In yet another bearish wave last night, the market has lost over $16 billion of its valuation and came down very quickly from $123 Billion to $107 Billion. Most of the major coins lost saw more than a 10% drop, with Ethereum and Stellar suffering losses around 15%. Ethereum has now dropped to two-figures and is trading around $86, which might make it an attractive price point for potential investors.
While the market experts try to figure out the technical and fundamental reason behind such a steep drop, one opinion is unanimous: Bitcoin needs to hold strong and continue its momentum. Otherwise, further drops are likely in the horizon. BTC is currently trading at $3421 and a sub $3000 mark is also a possible outcome for Bitcoin if the market continues to behave this way.
Some analysts have pointed to negative market sentiments from a regulatory standpoint. A case in point is India (which was once among the top volume countries) which has partially restricted its citizens from buying cryptocurrencies. There is also talk of a possible ban on cryptocurrency trading in the country. The liquidity which was once flowing in the market has now been obstructed because the active traders are limited to only a few countries.
However, many are still optimistic about the crypto future and see this as a market correction which will be over soon. We also think that the continued institutional interest combined with regulatory moves in some crypto-friendly countries will bring the bulls back to the market.