At press time, bitcoin is trading for just over $8,400.
This figure marks a drop of roughly $700 over the past few days. The currency is incurring some very strange behavior as of late, though there doesn’t seem to be much of an explanation regarding why this behavior is happening.
Let’s start off with the basics. To do this, we must go back to the end of October, when bitcoin was really trapped in a rut following the disappointing opening of Bakkt and the Mark Zuckerberg hearing regarding Libra, Facebook’s new cryptocurrency project. At that time, the currency was traversing through the doldrums and trading in the mid-$7,000 range, a new low considering it had been doing relatively will since the summer despite a few drops here and there.
Then came some positive comments regarding blockchain technology from Chinese president Xi Jinping, who said that blockchain had the power to reinvigorate the economy of China and potentially rebuild its infrastructure. He further stated he would do everything in his power to push blockchain innovation within the country.
This proved substantial to the bitcoin price, which spiked to nearly $8,600 following the comments. However, from there, Bakkt continued to improve its present status and ultimately found itself trading more than $2 million in bitcoin futures contracts, which also assisted in the currency’s sudden rise to power. BTC once again found itself trading in the $9,000 range – something it hadn’t done since late September. Thus, more than a month passed before the currency was able to regain its stamina.
However, as of late, bitcoin appears to be back on bearish terms, having lost several hundred dollars from its price within the last few days. Things started out ugly when during the beginning of the week, BTC fell to about $8,800. People largely dismissed this fall, saying it was only $300, though it did inspire some to keep a watchful eye out. From there, bitcoin fell to $8,600, knocking another $200 of its price, and at the time of writing, another $200 has vanished.
It is strange that the currency could once again be falling into negative territory considering all that’s been done to improve it over the past month. At the same time, it’s important to remember that we are, indeed, dealing with bitcoin, which is arguably one of the most volatile assets in existence. Regardless of how high it spikes this seems to be a never-ending problem for what many refer to as “digital gold.”
At the same time, there are those that continue to remain adamant about its abilities. One such figure is Tim Draper, who recently commented that the currency would hit $250,000 within the next few years and Tom Lee, who continues to remain positive regarding where BTC’s price can go.