Bitcoin market is facing a considerable crash this month falling up to $4100. Bitcoin is currently trading at $4457, as reported by CoinGecko.
Bitcoin is currently at a drop of 77.37% from its all-time high of $19665 on December 16, 2018. Considering a 90% price correction as usual in the BTC sphere, a price around $2000 might soon be a reality for Bitcoin.
Bitcoin Bubble Burst?
Bitcoin is being compared to the Dot Com Bubble burst which happened in 2000. Lou Kerner of CryptoOracle, the venture capital firm stated in an interview with CNBC that prominent cryptocurrencies should be compared to the large firms that came out of the Dot Com Bubble giving the example of Amazon.
The price of Amazon shares fell massively over 95% after the dot-com bubble burst.
The time when Amazon shares started to sell into the public in 1997, the price of each share was around $18. After the dot-com bubble popped in 2000, the prices fell to less than $6. Until this time, Amazon had already become the 2nd largest company in the United States to reach a capital of $1 Trillion after Apple.
Bitcoin Mining no longer profitable, Mining Rigs of no use!
Its a hangover for Bitcoin HODlers and miners as the price of Bitcoin continues to drop, breaking all support levels. At least four mining machines from SCMP are no longer profitable that operated at 6 cents kWh. Some ming pools in China are dumping their mining equipment as they run out of business. Some miners reportedly have shut down as many as 20000 rigs due to no profitability and high power consumption.
According to Blockchain.com, Bitcoin mining profitability has dropped drastically.
Many experts predict Bitcoin price to drop to $3500 and then to $2000 before it starts to make a recovery and enters into a new bull cycle.
What are your views on the current cryptocurrency market state? Comment below.