Cryptocurrency does not have a reputation for being able to maintain a consistent value. On the contrary, all of the different varieties of cryptocurrency have fluctuated in value widely over the years. Bitcoin has experienced this sort of volatility this year. It had been worth as much as $10,000 earlier this year. However, the bottom has fallen out of the bitcoin market recently. It is now worth slightly over $7,000. According to coindesk.com, this is its lowest value in more than six months. This has industry experts concerned that bitcoin will not be able to rally to the heights that many people expected it to attain.
The volatility of bitcoin has kept many people from investing in it. It is true that traditional stocks can rise and fall without warning. However, there are usually very simple reasons to explain why a specific stock has risen or declined in value. That is not always the case with bitcoin or cryptocurrency in general. In cases like this, many investors will usually swoop in and buy large quantities of bitcoin while it is priced low. However, that is not happening in this case. Investors are staying away because they feel the bitcoin market is very weak. They are concerned that it will not be able to bounce back any time soon. There is no confidence in bitcoin among industry experts at the moment. It will be interesting to see where the bitcoin market goes from here.
There was a great deal of optimism among crypto investors when President Xi Jinping of China said that his country should start to embrace the blockchain technology last month. However, not much has happened since then. China has made no further announcements on the matter. As time has gone buy, the excitement that was generated by Xi’s announcement has disappeared. Likewise, the bitcoin market has tanked in a very big and prolonged way.
When bitcoin will bounce back is anyone’s guess at this point. Industry experts believe that there are a wide range of factors that will play a role in the bitcoin value starting to gain some steam. However, determining which factors these are has proven to be an impossible task for bitcoin investors. There are many bitcoin advocates who have refused to start unloading their stash just because the market is now the lowest it has been since the summer. Longtime bitcoin investors feel that a turnaround will happen if they are patient.
