The bitcoin market is experiencing one of its worst corrections this year. Many Bitcoin enthusiasts thought that the market recovering of early April 2018 and late June 2018 will be sustained. Little did they know that the positive recovery was just for a moment.
Presently, BTC is trading below $4498.58 at the time of writing and its market capitalization and 24 hours trading volume according to data provided by Coinmarketcap are $78.90 billion and $8.03 billion respectively.
Some of the threats to bitcoin possible recovery this year considering the happenings in the market are:
1) Almost inactivity among its traders
2) The fall of the major coins
3) Decrease in mining activities
4) Its scalability challenge
5) Craig Wright’s Stance On fighting back
Almost inactivity among its traders
Considering the market capitalization of bitcoin at the time of writing and it’s 24 hours trading volume which is $78.2 billion and $5.03 billion. It could be seen that the trading volume is more than 950% lower than the market capitalization. This could show that there is high inactivity among bitcoin users and traders.
The Fall of the major coins
Most of the major coins are traded against bitcoin: they are also experiencing a decline which shows that there is little hope for the bitcoin market to use them to survive as most are coupled with the price movement of BTC.
Decrease in mining activities
From the data available on Blockchain.com, between August 27 and Nov 19th, 2018, the hash rate of bitcoin has dropped by more than 20.5 million TH/s. This is showing that miners have reduced their mining activities, yesterday ZyCrypto Reported an Information from China that Alleges many Bitcoin Miners have shut down due to reduced hash rate.
Its scalability challenge
It is true that the Lightning Network (LN) was introduced into the bitcoin market to correct its scalability challenge. However, the technicality that is required for its use among bitcoin users in other to improve the scalability of bitcoin transactions had not been acquired by many. Presently, it takes some moments for bitcoin transactions to be completed plus the increase in the transaction fees unlike before. This has made crypto users to look for faster and cheaper means of carrying out their payments.
Craig wright’s Stance On fighting back
It could be seen that he was performing his fulminations even though many thought he was a joke, that he would help to collapse the system once bitcoin miners leave bitcoin mining for BCH in other to gain its hard forks that were recently launched.
These five reasons are possible threats to a sooner bitcoin recovery.