Despite the surge in the price of bitcoin in the first half of this year, it was once expected to return to the all-time highs it set in 2017. However, as the price of bitcoin has fallen again over the past few months, the currency ring seems to be falling back into silence! Bitcoin prices suddenly fell sharply in New York on Thursday, quickly missing the $8,000 mark, with Bitstamp’s bitcoin price at a low of $7,394, down more than 10 percent from its previous session high of $8,200, according to market data.
Bitcoin’s share price fell 6 percent in 24 hours, despite a slight recovery to around $7,620 in intraday trading. It is worth mentioning that, from a technical point of view, the current price of Bitcoin not only fell below the 200-day moving average, to a one-month low, but also completely echoed this year’s two large-scale gains.
Bitcoin surged to a year-high of $13,880 in June as Facebook’s ambitious attempt to launch the cryptocurrency Libra led to a surge. But compared with the current price, close to one-half down.
In late October, China announced its full support for blockchain technology, which also led to a brief rally that helped Bitcoin break through the $10,000 mark and hit $10,350, but as Chinese officials repeatedly clarified that blockchain was different from Bitcoin, the rally was quickly eliminated, with Bitcoin entering a period of about a month.
Bitcoin’s performance this month runs counter to the seasonal trend of the past few years, when it surged in November for six of the past eight years, making it its best month. But it’s worth noting that prices fell sharply in November 2018 after six consecutive years of price increases from 2012 to 2017.
Meanwhile, other cryptocurrencies, which are in the top 10 by market capitalisation, also fell, falling by around 3-10 per cent, pushing the total value of the cryptocurrencies down 10 per cent to $211.6bn.
For now, the reasons for Thursday’s sharp drop in Bitcoin are mixed. Earlier this week, it was reported that some miners had to shut down and “surrender” because the price of bitcoin had been flat, which analysts believe has led to a gloomy market mood. Bitcoin could fall below $7,000 next, according to Bitcoin analyst Tone Vays.
Mati Greenspan, founder of Quantum Economics.io, believes the cryptocurrency market has been in a dead end recently, with the positive effects of blockchain in China disappearing completely in October. Due to the potential impact of low volume and low liquidity, a large order from a small number of buyers or sellers can cause sharp price fluctuations and must be taken care of.