A lot of things happen in the world of cryptocurrency on any given day. In most cases, this means the price of Bitcoin and altcoins will be affected for better or worse. Right now, the Bitcoin price is experiencing another small dip thanks to news coming out of Russia and South Korea. However, it is expected this dip won’t last too long. The Bitcoin price will return to US$4,250 sooner rather than later.
Bitcoin Price Dips but Will Recover Soon
Bitcoin price fluctuations can be found every single day. While every financial market or currency is somewhat volatile in its own way, Bitcoin has proven to be a slightly different creature in this regard. The market’s volatility has been documented pretty often, and it is a favorite tool used by financial “experts” to discredit cryptocurrency as a whole. Then again, there will always be ups and downs in any market, and Bitcoin is no different.
Just yesterday, the Bitcoin price surpassed US$4,250 once again. Unfortunately, this trend has met some pushback as we speak, although this is not entirely unexpected whatsoever. Any gains in the financial sector will always be met with some form of resistance along the way. Do keep in mind the Bitcoin price is still hovering around US$4,125 right now, which is well above the US$4,000 price mark.
The current Bitcoin drop only represents a 2.83% decline in value. Compared to the past few weeks, such a small retrace is nothing to be concerned about whatsoever. Most of the negative market pressure stems from decisions made by South Korean regulators regarding ICOs and cryptocurrency trading regulations. Additionally, Russia is said to be considering banning Bitcoin payments, although that is anything but confirmed at this point. Market manipulation comes in many forms; that much is evident.
One thing keeping the Bitcoin price up right now is its trading volume. While slightly down from yesterday’s US$1.9 billion, the current 24-hour volume of US$1.64 billion is still more than respectable. It is good to see demand for Bitcoin not slowing down by a significant margin. Even though China is cracking down on exchanges, trading still occurs in the country through peer-to-peer and even decentralized marketplaces right now. Rest assured no one will be able to prevent people from trading cryptocurrency.
Speaking of the Bitcoin trading volume, Bitfinex is still the top dog in this regard. Bithumb is making some inroads as well, as it has a decent lead over bitFlyer right now. Once again, we see three fiat currency trading pairs dominating the market, which is a positive sign. Altcoin markets are showing an increase in trading volume as well, although it is unclear if people are buying or selling Bitcoin in exchange for alternative cryptocurrencies.
All things considered, the brief Bitcoin price dip is nothing to be concerned about whatsoever. It is a bit troublesome to see, but this is merely due to external forces attempting to manipulate the Bitcoin market as a whole. China has done so successfully and now South Korea and Russia are trying to do the same. As we see more of these attempts, the dips will become far less substantial over time. For now, things are looking good for the Bitcoin price.