The price of Bitcoin has taken a significant downturn over the past couple of days. According to various price indexes across the web, the cryptocurrency dropped 16% against the U.S. dollar and many other fiat currencies during June 22nd. Bitcoin had dropped to a low of $540 USD on Bitstamp during the day as significant gains from days prior had vanished.
People are talking about investors are looking at the turbulent economy and seeing the cryptocurrency as a haven. Volatility-wise Bitcoin is moving up and down rather quickly against sovereign currencies worldwide. As the reward halving day approached it seems China and various people around the world started buying up the currency in vast numbers. However, the past few days shows a significant sell off almost parallel with the prior rise.
It also seems fears concerning China’s economy has also helped boost the initial rise and discussions of the Brexit vote. Opinions within the U.K. has changed however, and polls show that remaining is leading 10% in popularity over a ‘Brexit.’ But typically these outside economic events do little to the token value of the network, and some have blamed the recent DAO incident.
On June 23rd Bitcoin has shown signs of an upward trend and maybe exiting the bear trap stage of the game. During the early morning hours, the cryptocurrency rebounded up almost breaking the $600 range again but was met with much resistance. It has since been pushed down to $568 per BTC, and the bears are still scratching away at its value.
With the downturn in price, good news has also been taking place within the industry infrastructure aspect of this environment. Most notably Coinbase has integrated PayPal into the company’s services, and the Boston-based Circle Financial has raised $60 million in venture capital from Chinese investors. Another significant investment comes from the Tel Aviv-based company Colu which has raised $9.6 million today according to news outlet reports.
Venture capital is still flowing into the industry and businesses are still scaling around Bitcoin’s great architecture. The price is well above what it was just a few short weeks ago, and it may get higher as the halving day gets closer. CNBC blames three key events for the price dip which includes the Bitfinex outage, the Brexit opinion reversal, and the yuan effect.
It is anyone’s guess what will happen next in the land of cryptocurrency as it has been a turbulent time with both market value and news surrounding these digital currencies. Most bitcoiners will agree that the roller coaster is always fun and make sure you strap on your seatbelts when investing in Bitcoin. Until next time Live Bitcoin News will let our readers know what’s happening in the world of crypto and its markets.
Sources: CNBC, Circle, CoinDesk, Coinbase, Wiki