Bitcoin drops, is it due to increasing demand of rivals?
December 21, 2017 6:40 am,
Bitcoin shakes up or let’s say, BTC got a reality check. Recently, it was observed that prices rolled down and there was panic on a roll.
According to Coinbase, a few conclusions on the BTC prices are:
- On 19thof December 2017, Coinbase said that the customers will be able to buy and sell bitcoin cash, but the service was not immediately available.
- Coinbase is the leading platform for buying and selling it in the United States.
- The cash split off from the original bitcoin on August 1 this year after a group of developers decided to try to improve bitcoin transaction speeds and costs.
- So, BTC prices dropped by 10% as top cryptocurrency marketplace started supporting rival, bitcoin cash.
- Also, SEC has recently suspended red-hot trading on bitcoin stock. Read more about it here: http://money.cnn.com/2017/12/19/investing/bitcoin-crytpocurrencies-sec-bubble/index.html
On 19th December, another article observed that BTC prices dropped USD 1100 in less than 2 hours.
Price analysis as on 19th December 2017:
Its price had already been in decline, causing it to dip below the $19,000 level shortly before midnight ET. The downward slide continued throughout the morning, and by 5:30 the bitcoin price was trading at USD 18,401.
It shed another $300 over the next hour, at which point it took a precipitous fall. From 6:36 to 6:52, the bitcoin price plunged from $18,144 to $17,255, with most of that movement taking place during a seven-minute firesale.
Since then, Its price has managed to recover to $17,560 on Bitfinex, nearly $500 below its value on Bitstamp ($17,978) and GDAX ($18,057).
The price of a single BTC continued to fall after its highs over the weekend. But altcoins, which had taken a backseat to it’s surge, picked up the slack to push the market valuation for cryptocurrencies past the $600 billion mark. It was trading at $17,914.20, down 5.52% in the last 24 hours. (As on the 19th December 2017)
New cryptocurrencies are being introduced on the market, and so are people cashing out their money for the Christmas jingles.
It is very likely we will see some small price movements in the coming days, although no major long-term shakeups are expected in the process. At the same time, this may also be the beginning of a decent BTC price correction, which has been long overdue.
Although the year 2017 has been pretty positive for its price, all positive momentum will come to an end eventually. The Bitcoin price is suddenly dropping pretty hard, making it evident enough that people are cashing out with the Christmas holidays almost upon us.
So, it can be concluded that no one knows for sure how bad things will get, but for now, it’s time to diversify into altcoins.