Bitcoin prices have been rampant during the past few days. Soaring into the $200+ zones and dipping well below the $180 – prices, investors and traders alike have been taken aback by the erratic price movement.
The prices of Bitcoin fell away during the start of the year. Positive news this year has been a rarity as
The introduction of margin trading may be one of the causes of the recent price drop we have seen in Becton Pantera Capital – a bitcoin investment firm, wrote in a morning note.
“Increased use of leverage in the bitcoin market, both on the long- and short-side, has likely increased the magnitude of price moves.”
Whilst the press surrounding Bitcoin may be negative market analysis clearly shows how the Bitcoin has allowed plenty of users to experience unparalleled financial freedom and allowed many traders to make a quick buck of the increasing volatility.
Speculation
Speculators have gone on a frenzy recently speculating on what was the cause of the crash and how far the bitcoin will go. Many assume the current market movement is simple price correction and is Bitcoin going to its true value whilst others see this quick recovery as a sign of a price rally. Judging by current market books it seems as if the last of the sub $200 coins have been bought and price will recover.
To conclude the recent price movement may have been simply due to ButterFly labs dumping their coins to reimburse customers or a natural phase undertaken by the market to shake off weak hands. With speculators on the loose spinning theories of the prices hitting 10k or permabulls counting on another price crash the Bitcoin prices remain as wild as ever. Tomorrow can bring good news or bad but in reality no one can predict what bitcoin will have in store.
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