Volatility of Bitcoin is at All Time High
As of last Friday, September 8th, Bitcoin has been extremely volatile.
The cryptocurrency shot from going down over 7% to back up more than 10% in a time period of around two hours.
The form of digital currency fell below a mostly symbolic number of $3,000 for the first time in over a month. This occurred during lunchtime in London, when the coin dropped a staggering 7.8% against the dollar. One of the reasons could be attributed to the fact that China has put sanctions on the coin. Reuters has reported that some exchanges have been ordered by law to stop accepting new members, thus causing a halt on trading.
As of 3:15 BST, bitcoin had been up 10.43% against the dollar, to a number of $3,587.74. This means that during that day, there was a steep increase of $500. The numbers indicate that the extreme volatility of bitcoin can either make it a very solid quick investment, or quite the opposite.
Despite the numbers going up a little, bitcoin is still in the $1,000 range, below where it was earlier in the week. This means that according to the Financial Times, bitcoin is on the largest losing streak its seen since its creation in one year.
Bitcoin dropped 16% on Thursday, September 14th as Chinese media companies stated that the country would be tightening down on regulations as they shut down various exchanges throughout the country. After the People’s Bank of China banned initial coin offerings or ICOs (how start-ups get funding), the process seemed to be slowing down.
The situation only worsened as BTCChina, which is one of the largest exchanges within the country, stated that they would stop the trade at the end of the month. Bloomberg has since reported that those exchanges will be banned by them as well.