Bitcoin recovers from interim low and averts clearance sale

Bitcoin recovers from interim low and averts clearance sale

Most recently, the Bitcoin fell below the $10,000 mark, and experts warned of a downward spiral. This danger has been averted for the time being.

The Bitcoin is currently only moving in extremes: On Thursday, the world’s largest crypto currency was back on the upswing – at times by more than 400 US dollars to up to 12,000 dollars. Most recently, Bitcoin was quoted on the Bitstamp crypto exchange at a good 11,800 dollars.

This year the value of a Bitcoin has more than doubled. At times, the price gained more than 1000 dollars a day and last week almost reached the 14,000 dollar mark. On Tuesday, however, the crypto currency fell below the $10,000 mark.

Timo Emden of Emden Research had therefore warned against a downward spiral. “If there were no follow-up purchases at $10,000, the $9,000 mark would be the next stop,” the analyst said. This danger seems to have been averted by Thursday’s gains.

Many gambler and trader who own bitcoin are aware of this situation and act accordingly to the changes. Ever since BTC has been used in casinos and the number of users is growing. Read also this spanish article about it

Volatility of the Bitcoin

However, the strong price movements again show the volatility of the Bitcoin. Against this backdrop, it is difficult for investors to predict how the price will perform.

The changed crypto market, in which more institutional investors are now active, speaks in favour of rising prices. Facebook also presented its concept paper for the crypto currency Libra in mid-June – proof of the growing interest of large companies and investors in crypto currencies. The Bitcoin already benefited from this general surge in attention during its latest rally.

Another reason that speaks for a rising Bitcoin price:

Investors recently prepared themselves for a recession, withdrew money from the stock markets and invested it in “safe havens” such as gold or bonds. Given the high price of gold and the low bond yield, alternative forms of investment could become more attractive.

A look at the last big Bitcoin rally, on the other hand, is sceptical: the massive high from 2017 was followed by a sharp crash in the following year. In the crypto scene, it is also precisely registered that the Facebook Libra project has meanwhile met with fierce criticism. Most recently, the CDU/CSU parliamentary group had proposed the counter-model of a state crypto coin, a so-called E-Euro.

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