Bitcoin price falls midweek after promising climb
Bitcoin charts show downward movement after 17,536 USD high
Bitcoin price falls in the past couple of days showing downward movement after reaching a 17,536 USD high on 8th December 2017. This is now causing hesitation in the minds of investors as the value of Bitcoin marked 13,112 USD at 3:30 AM GMT on 10th December 2017. This drastic drop by 25.3% from midweek to the weekend in the span of just 3 days hints Bitcoin is a bubble that could burst any moment.
At the time of writing, 4:00 PM GMT on 10th December, there is some slight upward motion in the Bitcoin graphs again. But this does not guarantee the escalation to continue. Another drastic fall might be just around the corner; only time can tell. Below is the Bitcoin value graph over the last 5 days;
Rise of Altcoins and Fall of Market Cap
As a result of Bitcoin price falls, the value of Altcoins have gone up considerably during this time. Six digital currencies on the Top 10 Cryptocurrencies marks an increase during this period. IOTA cryptocurrency for Internet of Things (IoT) showed an increase of 12%. Bitcoin Cash (BCH) prices went up by 8% and Ripple (XRP) prices went up by 9%.
However, there was a decrease in the total market capitalization of over 8 billion USD showing the impact of Bitcoin to the total Market Cap. It fell from 426.7 billion USD to 418 billion USD.
Reasons behind Bitcoin price falls
One theory is Bitcoin whales manipulating the Bitcoin market prices. Bitcoin whales in simple terms are people who own 40% of the total Bitcoins that are currently in circulation, could be the cause of these swinging prices. This 40% of users could range from 1,000 to few hundred investors. Recent research statistics show that the top 100 Bitcoin addresses contain 17.3% of total Bitcoins in circulation.
The Bitcoin Futures trading at CME and CBOE which was given high publicity also seems to have had a major impact on the Bitcoin values. This gave investors and Bitcoin miners enthusiasm over Bitcoin during the past week, allowing Bitcoin value to soar high at a tremendous rate. But now the hype is getting settled in and the prices are moving back down.
Another issue is part of Bitcoin futures does not require owning actual Bitcoins. Bitcoins are not necessary even on contract maturity. This leaves a potential risk to the stability of Bitcoin going forward. Senior market analyst at Oanda, Craig Erlam made the following statement regarding recent events;
I’m not sure that traders will be particularly deterred by what has happened this morning. Although again, bitcoin is extremely difficult to predict and doesn’t exactly move in a logical manner.