Bitcoin digital currency have been experiencing huge drop for the past 1 week and it is still dropping at this time of my writing 16th July, 2017. It is predicted that bitcoin will find its balance during this period around $1650 – $1700.
I have earlier discussed various factors that determine the price of bitcoin per time, check the topic here.
The below highlights some reasons for bitcoin dropping at this unprecedented rate.
1. August 1 factor
August 1, 2017 is the deadline that was given by bitcoin miners and bitcoin core developers to either continue the way bitcoin operates or change the way bitcoin functions. Some people call this issue “clash of codes”. UASF (User Activated Soft Fork) is the term being used which can be explained bitcoin coming of age. Bitcoin diverse and fractious communities of developers, investors and programmers undertake a user-activated soft fork to determine some essential procedural rules going forward, primarily around SegWit(a technique for increasing efficiency by stripping away and reassigning the validation procedure from each transaction.
This jargon above and uncertainty have caused bitcoin holders to panic thereby selling of bitcoin to get back paper currency.
2. Price Speculator
Price speculator are not also helping the matter at hand. As bitcoin price continues to tumbles, more trust is withdrawn further from the future of digital currency assets.
3. Panic selling to fiat currency
4. Fear of the unknown
Holders of bitcoin are probably afraid for various reasons of uncertainty that the future holds for bitcoin digital currency.
5. Big money bag
Big money bag are probably manipulating the digital currency market to acheive an objective best known to them. Earlier Coinbase, one of the leading platform to store, buy, manage various digital currency like bitcoin, ethereum, litecoin state that whatever happens by August 1, 2017 would determine their action to protect the asset of its esteemed customers going forward. Coinbase said, they could stop, pause buy, sell, of bitcoin, stop trading for the time being to weigh in further action to take.
I love the analysis from this writer on TradeView website.
To get update about digital currency, you can also check CoinDesk website
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