The last couple of weeks have once again proven that bitcoin remains a strong, yet volatile digital currency, due to the numerous changes in value. To put things better into perspective, bitcoin finally ended up staging another rally over the end of the week, thus hitting a one-month high.
This was quite surprising judging by the fact that economic analysts have been warning against another negative volatility event. At the time of writing, bitcoin is trading at $4,625, which is the highest level that it has reached since the 8th of October. This is significantly better when compared to the value that it has a couple of weeks ago, when the digital currency ended up declining a bit below the $3,000 mark.
This concerned numerous investors, and at this time, economic analysts believe that the fall in value was mostly due to the crackdown of the Chinese government on the digital currency, regulations, and exchanges in the country. After all, having the world’s second biggest economy ban ICOs (a quick way for start-up to raise funds) isn’t a positive event. Not only this, but some of the largest digital currency exchanges in the Asian country were forced to shut down their operations, thus leading to less trading in the region, and a lower amount of money being pooled in, thus leading to a decline in the price. These events were also backed by yet another negative one, after a couple of major business leaders decided to express their negative opinion on the digital currency- one example in this direction is the CEO of JPMorgan Chase, who stated that bitcoin is a fraud around a month ago.
However, we are happy to see that Bitcoin has managed to recover pretty quickly. One of the main reasons for this is the fact that Japan has increased its activity, thus filling the void that was left by China, thanks to its better cryptocurrency regulations. After all, a bit earlier this year, Japan decided to completely legalize bitcoin, thus leading to numerous retailers accepting it as a form of payment.
While it is expected that bitcoin will get closer and closer to the $6,000 mark by the end of the year, short-term volatility may still be present. There are few reports talking about another possible fork in November, although there isn’t much data that could clarify the situation.
Based on everything that has been outlined so far, what are your thoughts on the recent volatility showcased by our favourite digital currency? Let us know your thoughts in the comment section.