Bitcoin has been creeping up the charts in terms of growth and has become the centre of the crypto world after 2 years. This growth of Bitcoin after crossing the US $10,000 barrier was speculated as setting up the initial pace of a bull run or climax run, but it has been stopped dead in its tracks by the price going down from a high of $13,950 to just touching the $11,000 barrier in a day. This has not been good news for Bitcoin as suspicion of many investors of the Bitcoin bubble before it blows up has more or less been confirmed.
Why The Price Went Down
Bitcoin’s price went down from $13,850 to higher values of $10,000 in a matter of 24 hours. This kind of growth isn’t favourable at all as the recovery of this can be a mountain climb ahead. Bitcoin is still tanking now and not looking to stay up. The price went down from $10,947 to $10,737 in a matter of minutes while writing this article. The reason behind such bearish behaviour of the price can be sighted to multiple incidents.
Firstly, the main reason for Bitcoin’s price increase was due to Facebook announcing the launch of its own cryptocurrency next year. This crypto will be called Libra (named after the project on which it was established and also scrapping the terrible name GlobalCoin). The announcement had boosted Bitcoin’s growth and helped it break the $10,000 barrier. Now, the hype is down no more new investors have come to buy Bitcoin and that has led to stagnancy in the market.
Also, some sources sight to the price is down due to the Coinbase website going down. According to CNBC who got in contact with a Coinbase spokesperson the site was down for a small period of time due to “high volume”. The price was also down due to investors cashing in at the highest price. Whatever the reason may be, Bitcoin’s comeback (if there is one) from this slump would be legendary.