In the past 2 weeks, Bitcoin (BTC) went from $6,400 up to $7,400 and back again to $6,400 and Ethereum (ETH) has reached a new low for 2018. While this is the cryptocurrency landscape, this manipulation isn’t healthy. Many people look to the Goldman Sachs news as the reason for the drop but that isn’t the beginning of when Bitcoin (BTC) started to take a turn for the worse.
It was noted that someone saw an investor took a 10,000 BTC ($74,000,000) short position even though the market had been mostly positive for the past few weeks. The position was so contrarian it was almost as if that person knew something the market didn’t. While there isn’t proof of insider trading, there is a lot of speculation that an insider at Goldman Sachs took this position knowing what the news would do to the market. Unfortunately, it is unlikely we will ever know who that person is or what knowledge they had.
Along with the drop in Bitcoin (BTC), Ethereum (ETH) has reached a new low for 2018, after shooting up to about $1,400 in January. The last time ETH was this cheap was in May of 2017, erasing all gains any investor has made since then. Many coins are in the same boat as ETH, or worse. In fact, for the most part, most coins that have been around for longer than one year, are either the same price or less than exactly one year ago, except for Bitcoin (about $4,500 one year ago).
This bodes the question, is any other coin but Bitcoin worth holding for the long term and should investors only trade altcoins? Personally, I do not have an answer to this but year-over-year many coins don’t hold up and in many instances, drop in price.