Deer Steemit Friends,
Within the last couple of weeks we really have seen strong volatility within the cryptocurrency market.
Daniel Dabek (founder of Safe Exchange Coin) states bitcoin fluctuations are related to the following three points:
- The summer months has volumes decreasing which means fewer buyers are entering the markets due to vacation and people's general lack of interest in playing markets.
- ICOs and coin holders have been cashing out on the relatively high prices of all of the cryptocurrencies. Especially Ethereum and then to Bitcoin (which is still the most commonly used crypto currency for everyday purchases).
- There has been an over subscription to trading on margin long. Which has led to exacerbate the price losses in both Ethereum as well as in Bitcoin. That is also why the bounce from the lowest price was so sudden. The traders who saw this coming got right back into the market.
Now switching to the future. August 1st is a big day. Segwit2x will be arranged by then. Bitcoin's technology will be upgraded (whether you agree or not). During that timeline the supply and demand of bitcoin will be heavily affected. Right before the August 1st date, we will most likely see turbulent prices due to speculation and fear. After August 1st the prices will be determined solely by what occurred in that timeline.
Here is a cool flow chart for everything that is happening with bitcoin.
