Bitcoin is in the longest slump of its 10-year history, which is forcing even its most ardent supporters to shelve dreams of global disruption and focus on simply tightening their belts, The Wall Street Journal reported. Signs of the crypto winter are everywhere, marking a sharp reversal since the manic highs of 2017. The price of bitcoin Tuesday was just below $4,000, down about 80 percent from a trading peak of about $19,800 in December 2017. The total market value of all cryptocurrencies outstanding is down 85 percent from its peak in January 2018. Volumes on the largest U.S. exchanges have also been falling steadily for the past 15 months, according to research firm TradeBlock. Cryptocurrencies have struggled to attract mainstream institutional investors. Regulation is still unclear, which has scared off some potential users. Companies that have sprung up are under pressure until the next upswing, and crypto fans aren’t sure where that will come from or when. While bitcoin is trading well above its December 2016 level, the severity of the recent drop is raising concerns that it may never recover. The market’s long-term viability now hinges on the development of tangible uses for bitcoin and its underlying blockchain technology. The sharp decline in price has led to cost-cutting at some firms. Firms that raised capital and made money during the boom are taking advantage of the slump, scooping up smaller companies. Revenue for bitcoin miners, who get paid in newly created bitcoin in exchange for processing transactions, has also fallen over the past 15 months.
