In the last couple of days, Bitcoin has experienced a lot of movements. From extreme panic to incredible euphoria in mere hours, I get caught wondering what pushes the coin to regain its price so quickly? As shown below, it was tanking hard in November 12 but was immediately back on the rocket pad November 13. I get that in something as speculative as cryptos, wild crazy swings are normal and to be expected. I was just thinking that it would be more like ETH or LTC, steady climb to higher price, right after a major correction.
It's just weird seeing a more venerable coin acting in a highly volatile way. The gold standard of cryptos is not really something reliable to fall back on. Especially when you need to exchange multiple volatile cryptos to a stable one.
Thinking about this during my work, it just doesn't seem to make that much sense to me. Usually when people dump something, they're not likely to pick it back up. At least not until their fear and doubt subside, I guess. I figure there must be new players on the hunt, looking to have a value buy, a bargain entry to the market. Or potentially something even bigger, signifying cryptos validity and mainstream acceptance.
Apparently, it's been all over the news today. A startup called "Square" which does credit card processing or "financial services" decides to let its users buy and sell Bitcoin (on a mobile app, no less). Its CEO is Jack Dorsey which is also CEO of Twitter. Despite the abysmal performance of Twitter stock, Square stock has more than doubled its price since last year. Given this piece of news today, I would venture a guess (which you should take it with a grain of salt) that people who know of Square inclusion of Bitcoin were partially the force behind Bitcoin rapid recovery. It seems too coincidental to have a coin priced in thousands of dollar flip a day before news of its acceptance by a profitable company is in mainstream media.
This also might have convinced people who sold it earlier to buy it back again. Or maybe the whales of cryptos have enough fun with BCH and ETC that they decided to put some back into BTC just for the heck of it. I don't know. Your guess is as good as mine, probably even better than mine. In any cases, if this experiment works out for Square, we might begin to see average people treating cryptos as the norm rather than some obscured technology.
I'll definitely keep an eye on this. Unpredictable it may be, cryptos speculating is fun.