BITCOIN CRASHES BY 23%
Hey there Steemers, today I am going to be talking about the recent Bitcoin crash that happened today, which caused it to plummet by 23%. This ever-changing coin was also nearing its all-time high of $1,165.89 in November 2013. However, today's price was $1,153.02, just $12.87 away from its high! At the moment, the current price of Bitcoin stands at $971.00
Why Did Bitcoin Suddenly Crash?
Bitcoin created a 'bubble' you could say which finally burst and caused it to take a heavy hit. For those long term investors out there, this is a good chance to buy your Bitcoin, as the price could go up over time! This bubble formed because if Bitcoin were to beat its all-time high, there would be no sellers or shorts, which meant that this bubble would form quite quickly, just waiting to pop.
There is a thin trading volume which is good, but it hit some people hard, including me; I bought £100 ($125) in Bitcoin at the price of $1073.35 for 1 BTC. At this time, I got 0.10514 BTC for the price I sadly paid. However, this just shows how volatile Bitcoin is and always will be. Experts say that Bitcoin will find a floor and stabilize at the $850 to $1000 range. This sudden change in price in Bitcoin is not unusual and will always show throughout the coin's lifetime.
Reason Behind The Crisis?
The Consumer News And Business Channel recently claimed that the reason Bitcoin crashed is because of the crisis of the Chinese Yuan. It has become a threat across many countries as the value of the yuan has decreased. This is a big part as most Bitcoin trade comes from China themselves. On Thursday, the yuan went up against the USD Dollar. This was a sell-off in the USD Dollar as there was uncertainty of the future of the US Federal Reserve rates. There was also a state intervention in China for it's currency. The Chinese yuan is what caused Bitcoin to crash.
Conclusion
'If the yuan goes up, then Bitcoin goes down.'
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JackManMania
This would require some statistical analysis to determine the correlation if any between the Yuan and bitcoin. In finance there are many extraneous factors that could influence price movements. Even so, correlation does not prove cause but only a relationship. This kind of analysis is time consuming and involves so many factors. Bitcoin as any currency is also subject to price manipulation by large holders. Maybe satoshi is the equivalent of the bitcoin federal reserve still pulling some strings. The conjecture could be endless. If Consumer News and Business knows the reason why something crashed then how come they didn't predict it?
Thanks for your post. Great info!
Yeah, I totally agree with you on that one! Thank you for the feedback :) It will be valued. The CNBC should have made a prediction as they could have let others know what was coming, but they decided to 'not bother' you could say and let it go without a trace, if you kind of get me :) Thank you :) (I like smileys a lot!) :D