Bitcoin prices continue to be under pressure as the industry comes under more and more scrutiny from the various regulators and governments as well. Even many Asian regulators, which were previously considered as friendly to the bitcoin industry, have begun to crack down on the corporates and individuals that are associated with the bitcoin market and this is why the prices are facing the heat. It is indeed a bit surprising that bitcoin seems to be facing all the heat when there are so many other cryptos around, some of which are doing as good, in terms of ROI, if not better than bitcoins.
Prices Under Pressure
While bitcoins have been getting all the good attention over the year 2017 due to its price rise and its high price, we believe that it is only natural that they get their share of bad attention as well as we enter into the year 2018. With the bitcoin market under the pump, it is likely that other altcoins, like ripple, ethereum and litecoin, begin to get their share of the attention and it is likely that they stand to benefit as the investors and traders look to diversify their holdings over the next few weeks as the bitcoin industry continues under pressure. The bitcoin prices have not been able to break through the $15,000 region and we believe that this pressure on the prices would continue for the short term as the situation continues to remain fluid for the bitcoin market.
With all the regulatory and restrictive pressure on the bitcoin market, the other coins have been having a relatively good time. Also, with the ETH mining market moving to proof of stake model, we are nearing the stage when the ETH cannot be mined for much longer and this is only going to increase the scarcity of ETH in the medium term. Hence, the ETH would be available only for trading and in the exchanges and this lack of supply is likely to push the prices even higher. We had mentioned in our forecast last week that we expect the prices of ETH to push through $1000 during the course of this week and with the prices now above $800 and looking bullish, we continue to look at $1000 as a short term target.
Looking ahead to the rest of the day, we expect the BTC prices to continue to remain under pressure. The major markets would be open around the world and the traders would be back after their holidays and we are likely to see a lot of liquidity and volatility and this should place the BTC prices under even more pressure. This should benefit the ETH market and we should see it moving higher in the short and medium term as well.