Bitcoin recently had a difficult time after a period of stability and suddenly came out lower at the end of last monthand we will know reason behind Bitcoins latest sell off. Lets get to the point what is the Real Reason Behind Bitcoin’s Latest Sell-Off.
The bitcoin price, still more than double from where it started the year, fell from its recent plateau from around $ 10,000 per bitcoin to just above $ 8,000 in a movement largely explained by the poor performance of the highly anticipated Bakkt bitcoin and cryptocurrency platform.
New data has now suggested that the slump in the bitcoin price may be more related to the “maturing” of bitcoin and cryptocurrency markets – with exciting new competitors distracting investors from the old cryptoposter boy.
Bitcoin, cryptocurrency and financial markets research firm Indexica has found that bitcoins’ strongest predictive measure was the ‘quotability’, it was first reported by Bloomberg, a financial newswire – meaning that traders treat it like any other investment and show that bitcoin is usually spoken in combination with more traditional currencies.
“Now that bitcoin is a big child, anything can set it in motion, just as anything can make gold or a G-10 currency move,” said Zak Selbert, CEO of Indexica, told Bloomberg and added bitcoins sensitivity to new competitors such as Facebook’s troubled Libra project and Mastercard’s collaboration with R3 demonstrates the maturity of the industry.
“Bitcoin is part of the financial landscape in a very intertwined and mature way.”
Many bitcoin and cryptocurrency viewers had hoped that the reputation of bitcoin as “digital gold” would mean that it would act as a so-called safe-haven asset, with investors buying bitcoin in times of political and economic uncertainty.
This seemed to happen earlier this year until the bitcoin price fell sharply as gold and the Japanese yen, two traditional safe havens, climbed. Meanwhile, some have suggested that Bitcoin’s recent fall of more than $ 8,000 earlier this week was due to the US Federal Reserve’s plans to pump cash into the financial market to increase bank balance sheets and boost inflation.
“We know that [Fed easing] has historically helped bitcoin,” Joe DiPasquale, CEO of the bitcoin and cryptocurrency investment company BitBull Capital.