Bitcoin trading has been a rollercoaster all this month, with bitcoin price getting to new lows every day. While there have been bullish predictions for the end of the year, the bulls are yet to take control. Several reasons have been declared as the culprit of this situation. But independently of this, the tanking goes on an on.
Bitcoin Price Is Red
Who could have thought it? When the bubble was in full swing almost a year ago, and bitcoin prices were over $15K, many people invested in bitcoin as a store of value. This means that they turned their savings to bitcoin to make them grow. But this vision might have been wrong. Today, the market has sunk again completely, with bitcoin losing more than 5% of its value, reaching dangerously low levels.
But regardless of this, the real problem is that the causes of this are not clear. Analysts like Novogratz and Lee have predicted bullish scenarios for bitcoin price, but they have flopped several times by now. some really think that the bitcoin bubble has burst, and that bitcoin will slowly fade into oblivion. Others think it will lose importance and will fade slowly into obscurity as a failed experiment.
But while holders are sad, traders are happy. Traders love volatility and these sudden moves lets them have huge gains in no time. While bitcoin price was flatlined, traders like Arthur Hayes from BitMEX were unhappy. For them, ups and lows mean business.
Possible Causes Of Bitcoin Price Drop
While there are hints of probable causes of this new low, on this occasion, nothing is clear. It seems that the whole issue about the Bitcoin Cash Hard Fork has stirred the pot. With this talk about instability and uncertainty filling the headlines investors are scared. Even the Deloitte Blockchain Chief knows of this. She declared to Coindesk that bad cryptocurrency headlines are making client nervous.
But more than just bad rap, there could be big things incoming with this hard fork issue. Bitmain, the big mining hardware manufacturer has more than 1 million Bitcoin Cash in their vaults. With this hard fork, they could decide to split their coins and dump the market. This would make prices get even lower due to the abundance of bitcoin-convertible cryptocurrency. And because it is a hard fork, it would cost him literally nothing. In the end, it seems that this hard for has turned things upside down.