Since the start of the year, Bitcoin has been making its way to once again reach its all-time high of $20k… or at least it’s trying to.
There’s been a lot of volatility being shown over the past few months (nothing new there), and as the flagship cryptocurrency attempts to stay above the $10k range, let’s take a look at what is the actual cause of this volatility and what can trigger the prices to stall.
Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
Uncertainty is one of the biggest factors behind the Bitcoin price volatility.
Many analysts have speculated that the crashing BTC prices could be due to the ongoing trade war between the US and China but others believe it could be down the UK and European Union’s situation with the whole Brexit fiasco.
Then there’s the US Securities and Exchange Commission (SEC) who have delayed their decision on the three bitcoin ETF proposals several times over the course of this year now. The final ruling isn’t expected until sometime in September or October this year which means investor activity in the State may slow down a bit until a decision is finally reached.
The rise in the price of cryptocurrencies has been often accompanied by an increase of general interest by big institutional investors. At the end of 2017, we saw a lot more people enter the market who probably never had even heard of cryptocurrency and get involved with the space.
A senior market analyst at eToro, believes that there isn’t much to indicate that the worldwide events are actually having an impact on the market.
Speaking to Forbes, Greenspan said:
“Many analysts have been doing their best to tie in the latest moves in the crypto market to the uncertainty in geopolitics but it’s difficult to say exactly how much connection there really is.”
It will be interesting to see how the price continues. For more news on this and other crypto updates, keep it with CryptoDaily!