Bitcoin Price Dives by 18% After hitting an all-time Heights of $11000
Nov 30, 2017 Posted / 1936 Views
This week Bitcoin price rose to an all-time high of about $11000 before crushing by more than $1000 to about $ 9300 at the time of this writing. The currency then made a brief attempt to recover the $10,000 level but could not hit the jackpot twice and is trading at $9900 at the time of this writing. The all-time increase in the price of Bitcoin came as gains accelerated. From just $8000 in about a week ago to topping $9000 by Sunday before soaring above $10,000 by Tuesday evening. Leigh Drogen former trader and current head at Estimize a company that collects and publishes financial estimates for data such as earnings told CNBC that,
“The bitcoin market is one of the most difficult market to trade because of volatility. Unlike the Stock Market Bitcoin Market has no big firms that would buy after a sharp decrease in price in an attempt to support price. Bitcoin has no fundamental value and its price is based entirely on its demand and supply at all points in time”
However, analysts are optimistic that there are some few long-term traders of Bitcoin at the moment who would buy large quantities of Bitcoin in the event of a price dive.
Bitcoin trading was extremely volatile as exchanges struggled to keep up with the surging demand of the cryptocurrency. According to CoinmarketCap, Bitcoin trading volume was at about $9.75 Billion in the last 24 hours alone tripling Ethereum’s which was at $2.26Billion. Leading exchange in the United states, Coinbase reported an all-time high traffic on Wednesday which rendered the exchange’s services unavailable for some customers. There were also performance issues as the company’s GDAX exchange was being overloaded by high transactions volumes an issue which was resolved later during the day. Jonathan Krinsky the chief market technician at MKM Partners told a CNBC news report that,
“Bitcoin has been going a bit parabolic over the past few weeks, I think the action that went down today marks at inflection point. But is still remains 200% above its 200-day moving average making it not a surprise to see some consolidation”
Bitcoin is controlled strictly by demand and supplies making the currency price a little bit complex to forecast. Bitcoin has a market capitalization of about $200 Billion but Bitcoin enthusiast believes that Bitcoin could dramatically raise the moment it taps a fraction of the world’s $200 trillion in traditional financial market assets.
We recently reported Former Fortress hedge fund manager Michael Novogratz predicting that Bitcoin could easily rise to $40,000 at the end of 2018. In a twist of events, Mr. Novogratz seems to be withdrawing this statement as he mentions during an Investment conference that Cryptocurrencies like Bitcoin are going to be the biggest Bubble of our lifetime.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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