Cryptocurrency world is caught in a whirlwind of price pressure, report recent analyststatements. The largest and the most popular, Bitcoin, has caught itself in the whiplash of higher regulatory measures and trader pressures.
However, the direct impact has been price loss due to margin traders who battled price directions with oversell to remain in-position, bringing down prices to a record low of $120 in the previous week, in what analysts term as a ‘flash crash.’
But more trouble was just around the corner, as Litecoin, the closet in terms of prices and popularity to the established Bitcoin, also felt a similar quantum of pressure, disturbing the recent placidity in cryptocurrency trading.
Litecoins and Bitcoins: unsynchronized price fall
Where earlier the price difference between the two digital currencies was in synchronized at a distinct ratio as this chart presents, the two currencies have trodden different paths, in recent weeks. Where the litecoin traded at prices as high as $48 in the past ten to twelve months, it has now bottomed out to $4.
As another chart depicts the fork in prices in the first to mid-week of August, 2014 is indeed the historic point, for Bitcoin itself had begun the negative trend.
Fall to continue
In negative news for the virtual currencies, leading analysts, Euro Pacific Capital, forecast the lack of forward momentum, in spite of positive news that has indeed been an important indicator. Chief of Euro Pacific Capital claims that, the prices are likely to fall because, “merchants all sell their bitcoins as soon as they are spent. So if there are not enough new buyers the price will have to fall.”
He reiterated that another price de-motivator for bitcoins and litecoin is ‘the recent move to regulate bitcoins is lessening their appeal with early adopters as is competition from 400 other digital currencies.”
Euro Pacific Capital has price target of $350 in the short-term and expects to see further downside in the long-term as well!
To contact the reporter of this story: Deepak Tiwari at email@example.com