At press time, bitcoin – the granddaddy of all crypto – is once again down for the count.
Bitcoin Is, Once Again, Free Falling
Yesterday, the currency gave enthusiasts a little bit of hope after it rose to nearly $10,500 during the late afternoon hours. Previously, the currency had been falling by as much as $500 per day for the past several days, leaving many looking for answers.
Just last week, the currency was trading at a solid $11,700, but later fell to about $11,300. It stayed here for a few days before falling to $10,900, then $10,500 and finally stopping at around $10,050. Many were concerned that the cryptocurrency would re-enter $9,000 territory, though the asset proved its strength yet again by regaining enough footage just in time. It later rose to $10,300 during yesterday’s early morning hours, before experiencing another quick gain to place it in the mid-$10,000 range.
Unfortunately, at press time, it looks like bitcoin is hovering at around $10,166. Overall, this has been one of the most unstable weeks for bitcoin over the past nine months, with the currency falling by 20 percent over just the last seven days alone.
So, why? That’s always every enthusiast’s big question. What makes bitcoin jump around like that? Why can’t it just decide to be bullish and remain so?
Jeff Dorman, the chief investment officer of asset manager Arca, explained that the trade war did the most damage to bitcoin’s stability. While in most cases, people saw bitcoin as a potential “safe haven” against drooping wealth and stock market crashes, the fear didn’t last that long. When things began to die down and some stocks showed signs of stabilizing, bitcoin’s “greatness” was bound to ease up, especially now that China’s national currency has strengthened, and President Trump is postponing further tariffs.
But things haven’t stopped there. Several “personal” events occurred within the cryptocurrency space, such as the dead partnership between Coinbase – a U.S.-based cryptocurrency exchange – and London banking firm Barclays. The two enterprises had been working together since March of this year, and to see the partnership end so quickly suggests that the U.K. is likely taking a harsher approach to cryptocurrency regulation. Live Bitcoin News reported on this news just days ago.
Chris Keshian, a former crypto hedge fund manager, comments:
These fluctuations are driven predominantly by traders. The market is stabilizing at around $10K after the run earlier this year.
So Many Delays!
He further states that several investors were simply “buying the dip.”
However, one of the biggest contributing factors to bitcoin’s sudden decrease was the Securities and Exchange Commission’s (SEC’s) decision to, once again, delay several bitcoin exchange-traded funds (ETFs), including one submitted by VanEck SolidX. This proposal has been waiting in the wings for well over a year and has experienced several delays along the way.