Bitcoin Prices Drops to Lowest Since January
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The Bitcoin prices have dismally tumbled in the last few days, facing a decline close to 20%. This is after the global cryptocurrency markets respond to numerous blows.
The popular digital currency is facing a massive drop to as little as $7,625.19 last night. At this very day, it has lost more than 17% of its worth from the time when it surpasses $9,200 on Sunday. Adding to that, the Bitcoin has been trading at its lowest in more than two months.
Nevertheless, unlike online casino gambling. Investing in crypto tokens is high hypothetical and at the same time, the market is largely unregulated. Therefore, anyone who might consider investing in it must be ready to lose the whole investment. At the same time, there is a chance that you might walk away with real money.
Bitcoin Collapse’s Many Causes
Bitcoin Collapse’s Many Causes
The Bitcoin prices collapse is clearly because of many reasons. “The Bitcoin plunges quite clearly has a variety of causes,” said Tim Enneking managing director of Digital Capital Management.
“The background cause was a healthy run-up to $10.5k in mid-February and an equally healthy pullback that had just about run its course,” he indicated.
Moreover, on Saturday, many traders who are in control of PlusToken’s wallets went on and make transfers of 13, 000 units of Bitcoin to mixers, and a move that many analysts believed that many scammers are selling their cryptocurrency.
Joe DiPasquale, the CEO of cryptocurrency hedge fund manager BitBull Capital shared his views to these developments stating that “the price falling below the 150-day moving average was a major setback, opening up lower support at $8,000 and $7,800.”
Bitcoin Security Implications
Bitcoin Security
Various markets onlookers articulated their concern that bitcoin prices have fallen with more assets that are traditional. The observers also gave an emphasis that this current drop of the bitcoin is now undermining the world’s noticeable digital currency is a safe haven.
However, Enneking believes that bitcoin should act like gold and a safe haven during a crisis. “To me, Bitcoin should be acting like gold and a safe haven during a crisis as repeatedly its price has been inversely correlated to the stock market”, said Danial.
Conclusion
On that note, if you are investing in Bitcoin or any cryptocurrency, you need to be wary of some the changes that it brings. Cryptocurrency trading is very good and at the same time, it comes with a lot of risks. No one knows how the markets will respond on a particular day, therefore, you need to always up to date with all the changes so that you don’t lose money.
FAQs
Why is the Bitcoin price dropping?
The massive decline of the Bitcoin price has been mainly because of a crackdown of cryptocurrency-related businesses by China.
What causes Bitcoin to rise?
The rise of Bitcoin was because of the supply and demand for it. There are payments distributed to bitcoin miners simply for verifying transactions to the Blockchain.
Is the Bitcoin losing value?
There has been a massive drop in bitcoin trading sweeping out a fifth of the Blockchain trading value.
Who owns the most bitcoin?
Bitcoins allows you to buy and sell goods and services online. At the same time, you are also able to transfer money. Moreover, the bitcoin is faster, cheaper and secure to use.
