In late December 2017, Bitcoin hit an all-time high of $20,089, and has since fallen back to $6,021 in mid-November. But the past week has brought more news surrounding digital assets, such as the prospect of sanctions. A recent report suggests that the value of bitcoin may be poised to rise again as investors seek safe havens from the financial crisis. In this piece, we will explore what might lead to this trend.
Since then, the bitcoin price has dropped back to the $4,000 range, which was a record high only a year ago. The reason for the fall is the recent ban by the Chinese government on mining and transactions. The central bank has declared all cryptocurrencies illegal in China, and this has impacted Bitcoin’s value. In early September, Bitcoin reached $52,000, but it did not reach that level until the middle of October. The US Federal Reserve has also made changes to its policy on asset purchases.
In February, Bithumb exchange was hacked, the second breach in a year. The U.S. Commodity Futures Trading Commission (CFTC) issued subpoenas to four crypto-exchanges for market price distortions. Meanwhile, South Korean cryptocurrency exchange Coinrail experienced a massive loss of over $40 million in tokens. In the coming months, the Bitcoin price may fall further. It will be difficult to predict the price of this digital asset.
However, the situation in Ukraine has also brought new focus to the value of Bitcoin. While most of the major cryptocurrencies have fallen, it has rallied this week. A rally in the last few days has wiped out most of its February losses, despite falling risk assets like tech stocks. This rally has caused traders to sell Bitcoin, and the price has fallen from $68,000 to $37,000. Another factor in the decline of the Bitcoin price is uncertainty. While the US Federal Reserve’s new policy regarding asset purchases has put the world on edge, there is no centralized authority that can intervene.
In mid-February, Bitcoin traded near its $10,000 level, but fell to $4,000 in just two days. Earlier in the month, the virus had affected the US economy in a big way. The currency was trading in a wide range of value, from $0.00008 to $478 million. During the same week, many investors poured in. In the end, the market has recovered almost half of its losses. With the rise of the price of bitcoin, the crypto community is excited and ready to spend their money in the coming months.
The price of bitcoin fell below $4000 on 13 March 2020. In February, the cryptocurrency reached a peak of $10,000. In mid-March, a virus infected the bitcoin exchange, and its price fell to $400 on the next day. Currently, Bitcoin is trading in a range of $4,000 to $4500, and has been in a downward trend since then. This week, the U.S. Federal Reserve announced a 0% interest rate on the digital currency. This announcement caused the U.S. stock market to crash 1,000 points in the Dow.
The price of Bitcoin has been falling for the past five years due to its widespread acceptance in the financial system. In December 2017, the price of Bitcoin dipped below $20,000, and the price has fallen by 50% five times since. The price of Bitcoin has also been falling in correlation with other traditional assets. Nevertheless, the crypto market remains volatile despite its recent rise. The rise and fall of the currency is still a sign of its emergence and rapid adoption of mainstream applications.
Bitcoin’s price has remained amidst heightened uncertainty and market volatility. After announcing that its top general Qassem Soleimani had been killed in a U.S. airstrike, traders started selling their Bitcoin, causing the price to drop to a three-week low. This move has also led the US Federal Reserve to change its policy on asset purchases. The US government’s recent actions have contributed to the fall of bitcoin.
A recent report on Bitcoin’s price suggests that its price will continue to rise in the future. This is in line with expectations set in September’s global stock market. Despite the volatility, the currency’s price has been in a constant upward trend for the past seven years. This trend is also expected to continue as long as more investors and institutions enter the space. While the crypto markets are still volatile, it has a long-term upward trajectory and has potential to become a mainstream investment tool.