The volatility in the crypto market, especially bitcoin is a known occurrence to investors and enthusiasts, but the fluctuation is gradually affecting major players in the industry after a 17 month low that have seen its fortune hit a bottom rock.
Bitcoin and its Volatility
Traders were smiling to the bank last year when the coin was doing very well in the market, quite a lot of them trooped into the sector just for the quick gain and the many promises of good fortune. But the change in the fortune of bitcoin affected quite a lot of people, both traders, and operators and now, major players in the industry have been affected by the volatility and instability of the coin.
One of the firms that were affected by the volatility is Coinfloor, who incidentally is the oldest bitcoin exchange in the United Kingdom. The decision of the exchange to slash the number of its staff shows that the exchange is depressed and needs to take a drastic measure, if they are to stay in business and remain relevant in the market.
In a statement recently released, the Chief Executive Officer of Coinfloor, Obi Nwosu stated the reason why the exchange must restructure. He said:
“We’ve seen the significant change in the trade volume across the market. Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructuring, we are making some staff changes and redundancies.”
The crypto market is currently proliferated as there are well over 190 cryptocurrency exchanges in the world, and virtually all the exchanges are looking for a way to survive the ever competitive market. Though other exchanges are gaining more customers by the day, exchanges who are basically into Bitcoin are losing customers; this is largely due to the fluctuation in the market and lack of trust in the coin.
Market observers and analysts maintained that the decline in the fortune of bitcoin is temporary and will soon return to its glory days. Analysts are banking on the recent “trade war” going on in the world right now, which is set to favor the bitcoin market and the crypto market in general.
The United States economy sanction on Iran, Turkey and the rest affected their currencies, and the countries are seriously looking towards bitcoin as an alternative to their weakened currency. If this trend continues, observers are optimistic that the demand will rise again and exchanges and traders can once again see those happy days.