Bitcoin Price Hits New Yearly Low; Now is Best Time to Buy, Says Weiss Ratings
Bitcoin was back on the defensive Friday, as prices sunk to new yearly lows following a minor consolidation earlier in the week. As Hacked recently reported, the bears are making a run at the psychologically significant $3,000 support and are likely to test that level in the near future.
The bitcoin price is currently trading around $3,250 on major exchanges, having previously set a new 15-month low. On Coinbase Pro, BTC/USD bottomed near $3,200 late Thursday before quickly recovering near $3,300. Over the next 12 hours, prices would consolidate in the mid-$3,200 range. The leading digital currency printed similar levels on Bitstamp, Bittrex and Gemini. A premium of $100 was seen on Bitfinex, where bitcoin was trading hands around $3,350.
Aggregate data courtesy of CoinMarketCap show an average price of $3,305 at the time of writing. That represents a decline of 3.8% over the 24-hour trading cycle. With the drop, bitcoin saw its total market capitalization fall below $58 billion.
Daily trade volumes picked up slightly, reaching $4.4 billion on virtual currency exchanges. BitMEX was by far the largest market, processing nearly a quarter of transactions.
Bitcoin futures contracts offered by CME Group recorded a daily volume of 1,317 contracts. CBOE bitcoin futures registered 1,136 contracts. Over the past five days, both products had an average volume of more than 2,300 contracts.
Like bitcoin, the broader cryptocurrency market was also approaching new lows for the year. The combined cryptocurrency market cap reached a low near $104 billion, which is slightly higher than last week’s bottom.
Time to Buy is Now
Amid the search for an elusive bottom in the bitcoin price, a U.S.-based rating agency believes now is the best time to buy the digital currency anyway. According to Weiss Ratings, current prices reflect bitcoin’s “least speculative investment,” making it an ideal time to increase one’s holdings of the cryptocurrency. This is based on the belief that cryptocurrencies like bitcoin are “here to stay.”
Bitcoin “is getting to such low levels that it’s becoming one of the best buying opportunities of the year,” the Florida-based rating agency tweeted earlier this week. “As a store of value, Bitcoin is here to stay. We truly think it’s the least speculative investment a person can make in crypto right now.”
Weiss is no stranger to cryptocurrencies. Earlier this year, it issued the first-ever public rating of cryptocurrencies, ranking 74 blockchains along several criteria. At the time, EOS and Ethereum were the only assets to receive a “B” rating. No cryptoasset was given an “A.” Bitcoin, despite being the largest and most influential cryptocurrency, received a rating of “C+.”
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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