Srp 19

Bitcoin Cash (BCH) Value Triples In Less Than Two Days




· August 19, 2017 · 5:00 pm

After hovering around $300 for weeks after its initial fork, Bitcoin Cash (BCH) skyrocketed to triple its value over the last two days.


On August 1, the Bitcoin blockchain forked to little fanfare. Although the new Bitcoin Cash (BCH) token quickly spiked to around $1000 in its opening hours, it soon after tumbled into a stagnant holding level around $300. In the meantime, Bitcoin surged past $4000 and posted all-time highs on a nearly daily basis. The question on everyone’s minds: Sell or hold their BCH?

Now it seems we have our answer. Like a phoenix rising from the ashes, BCH surged past previous highs to over $1000 on Saturday morning. It has since stabilized at $800 and is trading at $788.14 as of press time.

Bitcoin Cash price chart

BCH’s trading volume also recently surpassed that of BTC. CoinMarketCap now shows BCH edging out BTC trading volumes by a margin of roughly 300 million. In the meantime, BTC price has been sliding down, although it has yet to dip below its $4000 benchmark.

Bitcoin Cash vs Bitcoin

The Canary in the Bitcoin Mine

Thanks to Bitcoin Cash’s new price, mining the BCH blockchain is now more profitable than mining legacy BTC. Additionally, block 479,808 on the BCH blockchain will likely adjust the difficulty for BCH mining downwards by 50% sometime this weekend.




Following this adjustment, Bitcoin Cash miners will earn more than double mining BCH than they would legacy BTC. As miners switch to the new blockchain, the increased hashpower and lower transaction fees on the BCH blockchain will likely drive more investors to Bitcoin Cash.

Although profitability on the BCH chain could potentially skyrocket over the weekend, other factors may encourage miners to remain on the BTC chain. For one, miners are paid and extra 1.5 BTC per block on the legacy Bitcoin blockchain, leading to much higher rewards. Additionally, miners earn rewards on the BTC chain much faster than the BCH chain- Bitcoin takes about 17 hours whereas Bitcoin Cash takes about 34 hours.

As South Korea Goes, So Goes The Market

Increased demand from South Korea is also driving up prices. Trading jumped to ten times its previous volume prior to the surge, much of it in South Korean won. In fact, data from CoinMarketCap shows that roughly $2.1 billion of BCH’s $3.5 billion trade volume (around 60%) is coming from just three South Korean exchanges – Bithumb, Coinone, and Korbit.

BCH South Korean market

Analysts previously surmised that increased international tensions between the US and North Korea were the driving factor behind BTC’s rally last week. Caught in the middle of this fiery rhetoric is South Korea, a current hotspot for digital currency trading.

With cryptocurrencies slowly becoming a new (if unlikely) safe haven from government turmoil, there now seems to be a growing connection between crypto trading and regional turmoil.

This was previously demonstrated in Africa, particularly in Nigeria, where the nairi lost nearly 40% of its value overnight due to crashing oil prices. Google Trends showed increased interest in Bitcoin immediately following the crash, indicating an interest from Nigerian citizens in moving their money to a safer reserve currency.

This is also now being fully demonstrated in Venezuela, which is currently undergoing a sheer economic apocalypse. Prices for consumer goods in the South American country have skyrocketed a whopping 741% from early 2016 to early 2017. Venezuelan online travel agency Destinia will now only accept Bitcoin for payment citing “increasing restrictions” and economic woes in the country.

Do you think a new “flippening” is in the making? Will BCH overtake BTC in the near future? Tell us your predictions in the comments below.


Images courtesy of CoinMarketCap, Bloomberg

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Srp 15

As Bullish Bitcoin Barrels Past $4,000 Standpoint’s Ronnie Moas Raises Year End Forecast to $7,500




· August 15, 2017 · 2:00 pm

Having boldly called Bitcoin to reach $5,000 per coin by the end of the year, renowned stock picker and founder of Standpoint Research Ronnie Moas has had to re-evaluate his prediction as the digital currency hurtles towards that figure halfway through August.


In the wake of Bitcoin’s record-breaking rise in value during the first half of this year, Moas has had to re-evaluate his prediction and has raised his target to $7,500 as the likely price for the cryptocurrency to reach by years end. The new target, a 50 percent increase over his previous predictioncame about after Bitcoin hurtled past $4,000 last week.

The Floodgates are Opened

The Floodgates are Opened

Moas, the founder of Standpoint Research, says that there will be an influx of big, traditional investment money that will be driving the next surge towards the year’s end. In an interview with CNBC, Moas said:

What’s happening is the floodgates are opening. I believe there are hedge funds and very deep-pocketed individuals going into this now, really hundreds of millions of dollars

Moas told his clients that his expectation is that Bitcoin can still rise another 80 percent from its current record breaking high by the end of the year. Furthermore, he has also re-evaluated his 10-year prediction and now sees Bitcoin rising to a whopping $50,000 by 2027 – a 28 percent annual compounded growth rate.

Traditional Investors are Taking Note

Having always been involved, successfully, in traditional stocks, Moas now sees these traditional investors exploring cryptocurrencies, bringing with them loads of capital. Moas sees digital currencies becoming part of strategic reserves and asset allocation models in the near future.

“You can’t look at this as a normal situation,” he said. “We’re in an industry that will probably go from $140 billion to $2 trillion and the Bitcoin price will probably move with that.”

True Believer

True Believer

Moas is a true advocate of Bitcoin, having stated before that 100 percent of his investments are in digital currencies, with the majority in Bitcoin and Ethereum. In the past, he would never invest in any of the stocks he picked, regardless of their success.

Moas has lofty ideas as to where cryptocurrencies can go, and instead of seeing a bubble about to pop, the stock picker believes it is just the start.




In a note to his clients on Monday, Moas wrote:

Any way that I look at these numbers, my forecasts are looking conservative. It looks to me as though we are at the same point in the adoption curve as we were in 1995 when we went from one million internet users to ten million. The following year the Netscape browser came online and we went from 10 million users to hundreds of millions of users overnight.

I expect that within a couple of years we will have between 50 and 100 million cryptocurrency users — up from approximately ~10 million today. We only have 0.15% market penetration right now — if that goes to 2 percent or 3 percent we will get to the $50,000 price target that I set in July.

Are these figures too high? Can Bitcoin really become such a valuable asset over time? Let us know in the comments below!


Images courtesy of Wikimedia Commons, AdobeStock

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Srp 13

Legendary Investor Howard Marks Admits ‘I Don’t Understand What’s Behind Bitcoin’

· August 13, 2017 · 4:00 pm

After calling Bitcoin a ‘fad’ and a ‘pyramid scheme’ the man who called the dot com bubble has admitted that he does not understand what is driving the value of Bitcoin, which keeps rising seemingly unhindered.


While many, including traditional investors, come around to Bitcoin and get on board with the digital currency that keeps breaking records in terms of its value, some are still stubbornly skeptical, and a little confused.

Where is the Value?

Howard Marks, the billionaire investor who made his name on Wall Street from calling some major investment bubbles, including the Dotcom bubble, said on CNBC’s Fast Money Halftime Report that he can’t figure out the actual value of Bitcoin.

Speaking about this new-age currency, Marks said:

It’s not a medium of exchange, it’s a medium of trading, so I can’t see any intrinsic value, I don’t understand what’s behind Bitcoin.

He later added:

For me, there is only one kind of investing: When you look at something, you don’t think, ‘Is it going up or down tomorrow?’ … You say, ‘What is the intrinsic value?’ and then you say, ‘Can I buy it for less? […] There is no intrinsic value in Bitcoin.

Value of Bitcoin tops $4000

Value Keeps on Rising

Despite this doyen of traditional investing stating that there is no intrinsic value to the most famous digital currency, its value recently topped $4,000. As such, there are very few assets in the world that can even come close.

Fundstrat co-founder Tom Lee, CEO of Ritholtz Wealth Management Josh Brown as well as another investing legend Bill Miller, are all in the opposite camp of Marks’ as they have thrown their full support behind this up and coming skyrocketing asset.

Lee believes it will be the top performing asset at the end of the year while Miller has said that he is the proud owner of Bitcoin.

Don't get left behind

Left Behind

Marks was happy to concede on the show that perhaps the digital currency was a technology and an asset that he was simply too old to understand.

“Maybe I’m just too old and too much of a dinosaur to understand Bitcoin,” Marks said jokingly.

However, Marks has still been bold enough to compare Bitcoin to other bubbles that have gone back as far as the 1900 Tulip mania in the Netherlands. It is through his popular memos that the former Oaktree Capital co-chairman warned about a crash in Bitcoin.

Should people worry about what these traditional investors think? Is Bitcoin breaking the mold and setting its own precedents? Let us know in the comments below!


Images courtesy of CoinMarketCap, Shutterstock, Thomas Lee/Bloomberg

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Srp 08

Unregulated Bitcoin ‘Wild West’ Gives Rise to Spoofy

· August 8, 2017 · 5:30 pm

Spoof orders, illegal on financially regulated markets, are on the rise and being exploited on largely unregulated Bitcoin and cryptocurrency markets. Demonstrable instances, perpetrated by a group or individual known as Spoofy, have occurred on Bitfinex and GDAX.


Spoof orders, or placed market trade orders that are not actually intended to be executed, are part of the rampant manipulation of traders on cryptocurrency exchanges. Trading into your own buy or sells is also illegal in the regulated financial markets, and it is suspected that this behavior has become more rampant in order to help Bitcoin price manipulators cut potential loses from their dubious activities. They also serve to sway trader behavior with massive sell and buy walls which are suggested to be the work of an individual or group, perhaps even the exchanges themselves going under the pseudonym of Spoofy.

Spoof Trading Ruled Illegal On Traditional Exchanges

Spoof Trading Ruled Illegal On Traditional Exchanges

With trading bots and API access to exchanges providing all the data needed for a coordinated manipulator, it isn’t a question of “is someone doing it?” so much as “who is doing it?”. Cases have been brought to light and prosecuted in the traditional stock markets, such as when Navinder Sarao pleaded guilty to spoofing offenses.

Using an automated trading program, or bot, Navinder’s actions contributed to the 2010 stock market flash crash. Then there is Michael Coscia who used a flood of small orders before canceling them to manipulate other traders. During Coscia’s trial, assistant US attorney Sunil Harjani said:

Traders contemplating sophisticated scams will think twice if they know that there are more significant consequences than a civil lawsuit or a regulatory action. […] Hedge funds and proprietary trading firms will closely review their trades, and strike down get-rich-quick manipulation trading schemes because the cost is not worth the benefit.

Is Spoofy Real? Evidence Seems to Point to ‘Yes’

BitCrypto’ed provides plenty of evidence on the Hackernoon website on market manipulation (including the video above), alleging that the trade spoofing activity is primarily carried out on the Bitfinex exchange. According to the investigation, Spoofy is either an individual or group, but certainly a coordinated entity with an unrivaled amount of money to influence the market.

Laying out all of the evidence, BitCrypto’ed writes:

Spoofy makes the price go up when he wants it to go up, and Spoofy makes the price go down when he wants it to go down…And he’s got the coin… both USD, and bitcoin, of course, to pull it off, and with impunity on Bitfinex.

Marketwatch’s Shawn Langolois, who appears to agree with BitCrypto’ed, further clarifies:

If Spoofy places a large buy order that entices smaller traders to hop aboard, he can turn around and instead use the uptick to execute a sell order.

Not Everyone Believes

Not Everyone Believes

No matter the evidence, however, there are still plenty of people who have yet to be convinced that a single person or entity could possibly be the sole driving force behind Bitcoin’s price.

Whether or not Spoofy is real, the practice of spoofing is very real and is already common enough to warrant rulings against it in the traditional stock market. Largely unregulated, cryptocurrency markets are still very much the “wild west” frontier of finance, a reputation hard to dismiss as exchanges and owners disappear or get arrested with alarming frequency. The same lack of regulation that makes cryptocurrency so attractive to many is also what allows modern day Butch Cassidys and James Gangs to get away with their misbegotten deeds.

Do you believe in Spoofy? Is he just a ghost story whispered of by grizzled traders? Let us know in the comments below.


Images and video courtesy of AdobeStock, Hackernoon

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Srp 05

We Have Liftoff: Bitcoin Price Rockets Past $3000 Record High

· August 5, 2017 · 11:30 am

Bitcoin’s price reached historic new highs at $3230 late last night, while Bitcoin Cash settled below $300.


Enthusiasm has finally picked back up amidst the volatility following August 1’s hard fork, and Bitcoin has a brand new price tag to show for it. Bitcoin shattered its previous record high of $3000 last night, while Bitcoin Cash took another haircut and has settled at around $285.

The 3k price represents a notorious resistance level for Bitcoin, one which infamously ended BTC’s previous bull run in mid-June. BTC’s price had just barely grazed the 3k level before a massive sell-off sent it plummeting to around $2,500 in one of the currency’s largest single day losses.

Bitcoin price chart - CryptoCompare BTC index

Since then, many have waited for Bitcoin to return to its previous highs as prices stubbornly hovered around the mid-2k range for much of June and July. Market volatility leading up to the August 1 UASF activation drove it down even further below $2000 before SegWit2x signaling finally restored prices to around $2600 in mid-July.

BCH Down, Other Cryptos Up

On the other hand, Bitcoin Cash (BCC/BCH) took another hit last night as BTC climbed. Although BCH launched at $200 and then skyrocketed to $1000 quickly after the fork, it has since been slowly losing value in its first six days of trading. It lost just over 20% value in the past 24 hours of trading.

Many have already pointed out that BCH’s inflated price was a result of being unable to withdraw BCH funds from various wallets and exchanges, leading to low market liquidity. Once these issues were resolved and trading re-commenced, however, the price plummeted to around $400 and has since continued to dip.

Regardless, it appears that things have been going well for traders who held on to both coins. Although many traders reaped large profits from selling off their BCH while prices were high, both coins’ combined value is now just under $3500. It remains to be seen if BCH’s price will dip further before stabilizing.

Other cryptocurrencies are also faring well during this new boom. Ethereum is recovering previous losses and is now roughly $238. Litecoin shot up from $43 to $46 and is currently holding there. Ripple prices have also just recently spiked to $0.185, up from $0.175 last night.

Bitcoin Cash price chart - CryptoCompare BCH index

A Milestone for Bitcoin

BTC’s new price marks a historic moment for users of the digital currency, who have waited with baited breath to see the outcome of August 1. Many have long awaited a resolution to the contentious scaling debates which have dogged the community for months.

Although Bitcoin’s scaling issues are by no means over (there’s still the 2x part to implement in November), for now, users can breathe a collective sigh of relief that Bitcoin is now sailing in smoother waters.

Do you think Bitcoin’s prices will stay above $3000? Did you hold both your BTC and BCH, or have you dumped either coin yet? Let us know in the comments below.


Images courtesy of CryptoCompare, Twitter

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Čvc 13

Bitcoin’s Retail Acceptance Continues to Drop

· July 13, 2017 · 2:00 pm

Bitcoin’s progression as a digital currency appears to be foundering as adoption by major retailers as a payment method is decreasing despite its recent rise in popularity and value.


One Step Forward – Two Steps Back

With record-breaking price surges and mainstream interest in digital currencies at an all time high, one would think that retailers would be lining up to accept Bitcoin as a payment method. It is no wonder, then, that it comes as a shock to many that the exact opposite seems to be happening. Retailers are more skeptical than ever about letting customers shop with Bitcoin.

In a report released on Wednesday by Morgan Stanley payments analyst James Faucette, it was revealed that Bitcoin is accepted by just three of the top 500 online retailers in the world.  That figure is down from last year’s report in which there were five retailers that accepted the digital currency.

Bitcoin not accepted

Retailers are Only Part of the Problem

While it might be convenient to blame retailers for Bitcoin’s sluggish rate of mainstream adoption, the finger should not be solely pointed in their direction. Bitcoin users are also playing a direct role in slowing its growth as a currency.

According to Faucette:

Bitcoin owners are reluctant to use the cryptocurrency given its rate of appreciation, more evidence that bitcoin is more asset than currency. […] Way easier to trade speculatively than convince new merchants to accept the cryptocurrency.

Many of the newcomers who are buying digital currencies such as Bitcoin are doing so in order to hold on to them, with the hopes of seeing more astronomical gains in the near future. As a result, although there is a much bigger marketplace of Bitcoin users, they are not necessarily active spenders of the currency.

Bitcoin Growing Pains

Bitcoin Growing Pains

Other factors that could have retailers withholding their acceptance of digital currency are the scaling challenges that are facing Bitcoin. Issues like slow transaction times and increased transaction fees are problems that will affect the retailer far more than the customer. The inconvenience of longer waiting times and transaction fees nearing $5 is hugely off-putting, especially in the case of smaller value purchases.

In an interview with Bloomberg, Atlantic Financial founder and Bitcoin Foundation board member Bruce Fenton explained:

There’s a problem with the fees being so high,  it does price out certain things. […] There are some micro transaction uses cases, like a cup of coffee is the big analogy everybody uses, that are being sort of priced out just because bitcoin is going up so much.

Looking Up and Looking Ahead

Looking Up and Looking Ahead

Despite the setbacks in the acceptance of Bitcoin as a currency, there are success stories. In Japan, consumer electronics retailer Bic Camera has begun accepting Bitcoin at some of its camera shops while retail giant Recruit Lifestyle recently introduced a Point of Sale system that is Bitcoin-ready already available at over 260,000 retail stores and eateries across the country.

Overstock.com, a large online retailer that is championing Bitcoin, said in May that the number of Bitcoin transactions has tripled since they started accepting digital currency back in 2014. Furthermore, those transactions account for as much as $5 million per year for the online retailer according to Overstock.com Inc. board member Jonathan Johnson.

Have you bought anything online from major retailers? Would you be willing to part with Bitcoin as easily as if it were cash? Let us know in the comments below.


Images courtesy of Pixabay, Max Pixels

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Čvn 23

Highschool Dropout and Bitcoin Millionaire Hosts Reddit AMA

· June 23, 2017 · 2:00 pm

High school dropout and Bitcoin millionaire, Erik Finman, has hosted a Reddit AMA to shed some light on himself and his journey in the cryptosphere.


Too Cool for School

Erik Finman was recently featured in a CNBC story in which he described the journey through the Bitcoin and cryptocurrency world which lead him to acquire over $1.09 million in Bitcoin and other smaller holdings in altcoins like Litecoin and Ethereum. Finman took the opportunity to conduct a Reddit AMA, where users were allowed to ask questions about Eric’s story.

Dropping out of high school at the age of 15 to focus on his educational website, Erik Finman made a bet with his parents in which he agreed to go to college if he wasn’t a millionaire by the age of 18. Thanks to the continuous Bitcoin rally, Finman was able to hire professional programmers to work on his website, later selling it for Bitcoin again, starting his own VR company, all while trading Bitcoin and increasing his holdings.

lots of bitcoins

Now, Erik Finman holds 403 bitcoins which are currently valued at $1,092,678.08, among other holdings, which means that he doesn’t have to go to college, according to the bet. However, it’s also worth noting that Finman is not yet a millionaire, as his profits in Bitcoin have not yet been realized. However, Erik believes in the potential of Bitcoin and blockchain technology.

During the Reddit A.M.A, he stated:

I see bitcoin going up way more than just the 2000s/3000s where it’s been. Bitcoin and blockchain technology is where the internet was in the 80s, not the 90s, but the 80s. And if you just get a fraction of the world on it. And I know all these entrepreneurs inventing world changing technologies that one of them will do a lot to get new people onto Bitcoin thus raising the price. Bitcoin will be worth tens of thousands of dollars to hundreds of thousands of dollars to even millions of dollars a coin

Reddit AMA

Riding the spotlight created by CNBC’s story, Erik Finman decided to host a Reddit AMA (Ask Me Anything) in which he planned to answer user questions, most likely on his journey towards becoming a millionaire and his dealing with Bitcoin and other cryptocurrencies. However, the focus was not on Bitcoin

Reddit AMA

Mainly curious about Erik’s taxes and education, many users wondered if Erik Finman paid his taxes accordingly, with some users suggesting the contrary. Many also asked if Finman has plans to return to formal education, although he didn’t show much interest in doing so.

The thread was also flooded with negative comments attempting to discredit Erik Finman as a kid who made a “lucky bet” when purchasing Bitcoin. Finman addressed one of these comments: 

I spent every day working to build up the number of Bitcoins I had. Turning 80-100 Bitcoins to 403 + other money in cryptocurrencies. Feel free to take what I say with a grain of salt but it was not one purchase, it was years of trading in addition to building out my projects. I wanted to clear that up. I’m not perfect, so you are right there might be imperfections in my advice.

Erik Finman

Erik Finman – Lucky or Shrewd?

While it may be simple to dismiss Erik Finman as “simply lucky”, it would be unfair to do so. When considering that Bitcoin is still so far from mainstream adoption, having the foresight to research and invest in Bitcoin is far from lucky, unless you’re buying Bitcoin blindly because someone told you too.

Although it is true that Bitcoin’s volatility may be near impossible to predict, Finman’s understanding of the underlying technology allowed him to make an investment, not based specifically on the market (or hype) but based on the potential of Bitcoin. Not only that, but his understanding of the markets themselves allowed him to grow his Bitcoin holdings with trades.

However, Finman has also proved that there is more than just luck to him through various projects he has previously worked on, which have also granted him high yields. These projects include his educational websiteabd his own VR company.

What’s your take on the story of Erik Finman? Will Bitcoin continue to make young millionaires? If so, can this change in wealth distribution change the world for the better? Let us know your views on the comments below?


Images courtesy of Twitter, Shutterstock

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Čvn 22

Bitcoin Potentially the Most Lucrative Trading Investment Since Amazon

· June 22, 2017 · 1:00 pm

Comparing the dotcom booms, Amazon share price and performance to Bitcoin draws some very interesting parallels, setting Bitcoin as potentially the world’s most lucrative trading investment.


Emerging Tech market Capitalisation Then and Now

Gordon Scott at Investopedia writes that Bitcoin is comparable to how Amazon was treated during the Dotcom boom.

Even by the start of 1997, everyone knew Amazon had a great idea, but no one could fully explain how much its shares should be worth.

It is that very problem that Bitcoin now faces. Everyone realizes that it is a great idea, yet it is hard to fully grasp exactly how much it should be worth. Bitcoin’s primary use as a monetary is well known, but the actual technology and its potential applications are still a great mystery to many.

Amazon faced the same problem as it took new approaches to distribution and supply chain management. Interestingly, Amazon initially started in the book sector and, while it dominates that market to this day, it has since evolved by several orders of magnitude to be the giant that it is today. Gordon further explains:

Investors were not able to fully and accurately quantify Amazon share value at first. Can you blame them if it was hard to analyze the idea of using supply-chain management software to create a virtual book warehouse and factory outlet mall synthesized into a single website?

If we take a look at Amazon’s market valuation back in its 1997-99 cycle there existed the same degree of price volatility that Bitcoin has experienced, at least in it’s 2016-17 period which has seen a much steadier rise as a result of actual widespread investor speculation.

It is the cryptocurrency’s volatility that makes it such a potentially highly rewarding trading investment. The price swings, while hopefully not terminal (as they became after 2010), offer the trader many opportunities to take profit and reinvest. As long as Bitcoin continues to follow the price trends set by Amazon, its traders can potentially continue to make a very lucrative trading investment with the coin.

As can be seen in the charts above, the dotcom boom parallels the current state of cryptocurrency. Furthermore, as other altcoins emerge to stand up to rival and compete with Bitcoin, there exist the same issues of fluctuations in price.

These same issues were present in 1997, except that some companies went on to continue rising as others crashed with the bursting of the dotcom bubble.

Bitcoin In Perspective

Sue Chang at Marketwatch posted this chart (below) which puts the current size and value of Bitcoin into perspective:

Bitcoin - Putting the World's Money into Perspective

As illustrated above, Amazon currently stands at a value of $402 billion, with Bitcoin already sitting at a $41 billion market capitalization. Given this, it’s not hard to get a sense of the size of the cryptocurrency’s current projected value and there is a great deal of market confidence in the coin to have reached this stage.

While many see Bitcoin as being in a bubble, and there may yet be many more volatile dips to come, it is worth remembering that companies such as Amazon suffered also from this market volatility. Volatility, while not desirable in a currency, could just be a sign of Bitcoin and its technology truly finding its feet among its fellow market giants.

Will Bitcoin fulfill its promise as the most lucrative trading investment? Let us know in the comments.


Images courtesy of Investopedia, MarketWatch

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Kvě 27

Bitcoin Plummets $600 Following Volatile Thursday Trading

· May 27, 2017 · 5:51 pm

Bitcoin’s price suffered more losses on Friday following Thursday’s drop and subsequent rebound, plummeting 25% in a single day.


While it appeared that Bitcoin had regained its historic upward momentum following Thursday’s $500 drop, Friday proved even more turbulent as prices dived $600 from $2.5k towards $1.9k. As of Saturday afternoon, Bitcoin’s price appears to have stabilized around $2.1k.

Bitcoin price chart

What Goes Up, Must Come Down

Bitcoin’s price drop follows a week of unprecedented growth, in which it climbed from $2000 to an all-time high of $2800. Many claimed that a correction was overdue and that Bitcoin is back on its way towards $3,000.

Others have issued dire warnings of a Bitcoin bubble that may just now be popping. Older investors can still recall the sting of Bitcoin’s infamous 2013 crash (and subsequent destruction of the Mt. Gox exchange), and are wary of repeating the same mistakes. Bitcoin’s price also has a repeatable history of spiking suddenly before crashing to a higher, more stable level.

Friday, Bloody Friday

Traders have historically used Fridays to sell off securities or place shorts, anticipating a price drop come Monday morning due to what has been called the “weekend effect“. The upcoming long weekend combined with Thursday’s high volatility likely fueled a large sell-off in the cryptocurrency market. Bitcoin’s influx of new investors following its price increases may have also spurred a panic sell.

You Bought the Ticket, Now Ride the Coaster

Experienced traders have continuously warned new investors about Bitcoin’s notorious volatility. In a Reddit thread chastising those who bought at the top on FOMO (“fear of missing out”), one Reddit user had some choice words to share:

Now here’s the question: did you buy Bitcoin just because it was worth a certain amount of dollars, or did you buy it to hold a piece of the action? This is a piece of the action. Roller coaster to the moon has its ups and downs.” – zomgitsduke

Another thread was created by a user claiming to have dumped $45k into BTC at its top. He intends to exercise discipline and hold:

“Genuinely don’t give a s— that the price has corrected/crashed/whatever you want to call it. It’ll be back sooner or later. Bitcoin is long term. Don’t weep.” – thesilentwitness

Bitcoin To The Moon

Despite these recent setbacks, many are still confident that Bitcoin’s run isn’t over yet. The market appears to remain Bullish as traders look to buy in on the massive price dip.

Do you think Bitcoin is headed back up? Or do you think that the Bitcoin bubble has finally burst? Tell us in the comments below!


Images courtesy of WorldCoinIndex, Shutterstock

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Kvě 26

Bitcoin’s $500 Price Drop Sets Community Abuzz

· May 26, 2017 · 12:00 pm

Bitcoin prices dropped yesterday from $2800 down to $2460, sparking concern and speculation across the cryptocurrency community.


The large drop in value has come alongside the largest Bitcoin Bull run in the currencies history, it caused panicked posts on social media with one Reddit user posting;

“What the hell happened with the drop from 2800 to 2460?!!!!!” – TakinBackMyLove, a distressed Reddit user.

Many other new Bitcoin users, drawn to cryptocurrency investment by the current upward cycle of the market, also voiced their concerns while Bitcoin veterans remained calm, having seen this all before, and much worse.

Welcome to Bitcoin

The drop follows three straight days of price increases for Bitcoin as the price climbed from $2000 to $2800, which is was an all-time high for coin. In financial markets, it is not uncommon to see corrections like this after relatively large gains over a short period of time, which really does bring a touch of sanity to a frenzied market. That the decrease was not more substantial, given what has overall been a very large rise, should give investors comfort.

Bitcoin Historical Prices

Past Volatility

Bitcoin has been historically famous for its massive volatility, with its price declining by several orders of magnitude in just the space of minutes. In August 2011 the price dropped by almost 50% from $13.50 down to just $7 in the period of 7 hours. However, the coin is also famous for its sudden gains too, as Bitcoin prices began hitting $80 dollars in the same year.

Bitcoin price drop August 2013

Another example is the 2013 crash, often attributed to the downfall of the infamous Japanese based exchange, Mt. Gox, when the site went down it took many Investors coins with it. Bitcoin took its time recovering, and cryptocurrency as a whole entered a bear market. Bitcoin has made slow and steady gains since then, however, it is only since March that the gains have started to rise at a disproportionately increased rate.

It comes as no surprise that in the wake of such massive gains that Bitcoin fever seems to have struck again.

Still Bullish

With daily candles ultimately still in the Green, all signs still point to the coin remaining Bullish and, at the current time of this writing, it has since started climbing back towards $2,550.

Bitcoin Still Bullish

What do you think of Bitcoin’s volatile history? Do you think prices will continue to climb or is it a bubble that is about to pop? Let us know in the comments below!


Images courtesy of BitcoinCharts, AdobeStock

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