Bitcoin enthusiasts will have noticed how the price continues to go downward for some unknown reason. Many people assumed the Bitfinex downtime was to blame, but the platform has been online again for nearly two days now. Unfortunately, the Bitcoin price is not showing any significant sign of recovery just yet.
The Downward Bitcoin Price Trend
The world of Bitcoin is always filled with surprises, and every day presents new challenges. Just a few days ago, the Bitcoin price seemed to be surging towards US$800 for the time in years. But that upward trend took a turn for the worse a few days ago after the Bitfinex exchange suffered from unexpected downtime. That was only the beginning of this downward trend, though.
Over the past few days, the Bitcoin price continued its downward momentum. This is not due to a lack of trading volume, mind you, as China remains very bullish and bearish on trading the popular cryptocurrency. Over the past 24 hours, there has been nearly 2 million Bitcoin in trading volume to hit the CNY market alone.
As is always the case when dealing with Chinese Bitcoin exchanges, there is a possibility some of the volume is being faked. Huobi and OKCoin combine for 92.6% of all Bitcoin volume in China, This is quite significant, to say the least, but also causes some centralization concerns in the Bitcoin exchange world.
Competition among Bitcoin exchanges dealing with the US Dollar is heating up once again, though. That is, assuming once you look past the dominant position Bitfinex continues to hold. All of the other exchanges are seeing similar amounts of volume, although OKCoin is slightly ahead of the likes of Bitstamp and Coinbase.
For the time being, it is anybody’s guess as to why the Bitcoin price continues to go down. Some people may argue the looming Brexit referendum plays a significant role in the process, albeit there is no indication this is true. The Bitcoin market is fickle and unpredictable, as it always has been.
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.