On the back of a 171% increase in Q4 2020, Bitcoin’s advance has been halted as the price has fallen from US$37 792.47 back down to US$30 000. This is the single biggest drop in its value since March last year.
As many may have expected the upward trend was going to be temporary. Cryptos are, of course, a very volatile asset and this was underscored by Andrew Lowcock head of investment at Wills Owen Limited in a report by Bloomberg.
“Today’s selloff is a reminder this is a relatively new asset, highly volatile, and still yet to find its place in the market. There are many (major) hurdles for it to overcome for it to be a useful mainstream asset.”
The cause for this latest dip is anyone’s guess. However, Bitcoin’s fall has seen the second-largest crypto make significant gains. Erethreum saw a 22% increase to US$1 161.36 which is the highest it has been since 2018. Other smaller cryptos like Ripple’s XRP and Litecoin were also on the up with gains of 10% and 12% respectively.
“The long-term outlook for both bitcoin and Ethereum remains skewed to the topside. However, both cryptocurrencies could be at risk of a near-term pullback as their respective surges appear relatively overextended.”
Daniel Moss, DailyFX Analyst via Business Insider
In a report by Business Insider, analysts expect a weak dollar, fluctuations on traditional financial markets and a shift to e-commerce could help Bitcoin bounce back.
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It’s very heart breaking when you keep on writing about bitcoin’s success yet you outright turned down and shot down everyone who had asked you to keep a persistent follow up on Golix after mischievous statements from the CEO insinuating he had lost passwords etc. Now it’s even worse, our accounts were removed from Golix with our knowledge. People just woke up to find they could not log in, and their user names/accounts were not in Golix’s database, meaning all the cryptocurrency they had listed on bitcoin had finally totally vanished, that is, even if the CEO finally “remembers the password” it would be of no use to already prejudiced clients. Add to that, the Golix website is now dysfunctional. So it only serves to open up the wound if you keep on writing on bitcoin.