Bitcoin bashed
Bitcoin suffered last week falling more than 20% over a seven day stretch, touching a daily low of around $7735 on Friday – lowest level since June.
Bitcoin closed Friday 27th at around $8060. Other digital currencies; ether and XRP, were also down on the week.
Why the Bitcoin drop?
I’m unsure but analysts apparently suggest the selling pressure was based on a lacklustre debut of a new bitcoin product, and of technical levels being broken.
Bitcoin is known known for its volatility and had been relatively stable since August 2019, trading in and around the $10,000 range. The sharp drop below $8,000 began a week ago and continued a sell off throughout trading last week.
What next for Bitcoin?
A fall back from a technical key level of $9,000 was quickly breached. The next level investors are watching is $7,500.
Bitcoin mining
The bitcoin ‘mining’ process uses computing power to compete and solve a complex maths equations. The winning miner gets Bitcoin as a reward for successfully completing the equation.
It has been suggested that neither buyers nor sellers really understand why this has happened this time – markets can be very fickle and Bitcoin is no exception. But despite the recent pullback – Bitcoin has roughly doubled since the beginning of the year.
It also received a boost this summer after Facebook announced its own planned digital currency, Libra which possibly brought more legitimacy to the crypto currency world.
But Bitcoin is way off its all-time high of nearly $20,000 in December 2017.