The bitcoin (BTC) price has experienced an incredible advance in recent months. The price even went over the $42,000 mark. For the first time since January 4 this year, the price plunged below $30,000. Currently the price stands at 30,798.34USD.
Where does the drop come from?
In a market such as BTC, it is impossible to give one or two reasons why the price is moving in a certain direction. However, there are sometimes clear reasons for people to panic. Yesterday we actually had two such news.
The most important is probably the rumor of a 'double spend'. Articles appeared on major websites yesterday announcing that someone had issued their bitcoin twice. Two miners found a block at almost the same time and put the same transaction in it.
Slushpool and F2Pool both claimed block 666.833. That's not a new phenomenon. In fact, that happens often with bitcoin.
The network solves that problem itself. In the meantime, it's just being mined by other miners. In the end, the network then chooses the longest chain and builds on it. The transactions from the block that are not included in the accounts expire and come back into the mempool.
One of the biggest points of bitcoin is that transactions cannot be reversed. And that's right, but for (especially) large payments it is advisable to wait for confirmation of ~6 blocks. The chances are slim, but you don't run the risk that your transaction won't go through when you have already provided a product or service, for example.
That's also why many exchanges are waiting for some confirmations before you can get started with BTC at their fairs. They want to make sure the money's arrived first.
This news caused panic and even seems to have ended up in the Bloomberg Terminals of several traders. That may be reason to take action for an investor.
Another annoying news from yesterday came from a striking angle: the maintainers of bitcoin.org were ambushed by Craigh 'Faketoshi' Wright. He threatened to sue if they didn't remove "his" white paper. Wright is someone who has been filing years of lawsuits, a tedious process that not everyone is looking forward to. Partly because of this, developers decided to remove the white paper.
This, too, was ultimately a storm in a glass of water: bitcoin can survive if the white paper is not on a particular domain.
A fall (in euros, admittedly) looks quite severe on the chart:
Comments
How did the industry react to the current declines? Some responses.
Ki Young Ju of CryptoQuant sees a pattern at the price of Coinbase. If the price there is more than $50 higher than average, then something is about to happen. It is striking that around these points there is a lot more money going towards the stock market.
Jameson Lopp points to misinformation as the reason for the dip. The news from above was pretty bloated, while there was little going on in both cases. Many major parties are now participating in this world. PayPal, MicroStrategy, Square and even banks like Goldman Sachs are seriously looking at options around bitcoin.
In PriceWatching, John van Meer takes the price of Bitcoin (BTC) with you. In the technical analysis he gives insights into the price and the possible scenarios. Based on the graphs, we discuss the current state of the price, but we also look ahead.
The price of one bitcoin is currently 31,015.69USD. That's a change from -11.24% in the last 24 hours.
The video updates can help you make decisions, but they're not hard predictions. You will stay informed about the video analysis via our YouTube channel.
Disclaimer: This video does not contain financial advice and is intended for educational purposes.
Bitcoin (BTC) Analysis
In the video above, John discusses a number of timeframes of the bitcoin price in Price Watch. He concludes:
"The bears have a strong presence and have broken support. If the price can't get above $32,000 - $33,000 then I see the price slipping further towards the lower targets at $28,200 and $27,000."
