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BTC Fundamental Analysis Reveals New Highs Unlikely in 2018

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Bitcoin has suffered a tumultuous first six months of 2018 to say the least. Yet this is probably not the end of the downside volatility for the year. Fundamental analysis of the BTC situation does not encourage the idea that it will make any more highs for 2018.

There are several key reasons for why this is the case. The retail demand is lackluster. Institutions continue to hesitate adopting the king of cryptocurrencies. The market capitalization for Bitcoin also appears to be excessively high compared to the amount of activity happening with available blockchains.

It is possible to be quite bullish on BTC longer-term but still see challenges for the short to medium term. This year promises more regulation from skeptical regulators like the SEC and continued growing pains with infrastructure that underlies Bitcoin. Altcoins may bear the brunt of the sluggish year. Many of them have nothing going except for the fact that they are digital assets. This is why analysts have warned about a potentially imminent “altcoin apocalypse.”

Bearish Signs Abound for Bitcoin’s Immediate Prospects

Something that many digital asset enthusiasts have missed this year has to do with the BTC mining hashrate. The aggregate computations for each second that happen to secure the crypto-network has in fact tripled. This signifies that an enormous amount of improved efficiency and new mining rigs are now working.

Thanks to cryptocurrency prices declining steeply from last year’s highs, many miners are now losing money. They could have easily experienced a 90% profitability decline in only seven months. It is considerably worse for the altcoin miners. This explains a lot of the continuing snowballing down of digital asset prices. The miners are selling their cryptocurrencies to try to make ends meet. It is unlikely this will stop soon.

The volumes on cryptocurrency trading are way off from the past winter and spring too. Add to this the declining interest from retail, and it becomes a dangerous trifecta of bearish fundamental signs.

Consider the Gallop poll run a few months ago. The results indicated under half a percentage point of American investors will “probably buy Bitcoin in the near future.” Strap in; it could be a rocky next few months in the Crypto-verse.

 

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