Cryptocurrency May be Stabilizing After Drops Throughout September
The prices for the two most popular coins in the market rose up on Wednesday, September 21st as the currencies tried to come back following the drop earlier in the month.
Bitcoin plunged a solid 30% during the beginning of September given the mass threats from Chinese authorities and some comments from market leaders saying not-so-good things about the currencies as a whole. China put a ban on ICOs and also made several of the largest cryptocurrency traders shut down operations.
The selloff during September was made worse by the aforementioned market leaders such as CEO of Morgan Chase & Co., Jamie Dimon, who stated that bitcoin is “a fraud” as well as a bubble.
After bitcoin peaked to a solid $5,000 during the beginning of September, it quickly dropped to a low of $2,951 towards the latter half of the month.
The 34% plunge earlier in the summer during July, occurred when the cryptocurrency had been expected to split into two different versions after new software was created. The new software known as Segregation Witness or SegWit had the hopes of speeding up the network as a whole. This split created a new type of blockchain currency that has followed a similar trend to bitcoin known as Bitcoin Cash.
Bitcoin has been facing the threat of another split which is expected to occur sometime in November. This split would make a third type of bitcoin that would increase the block size to 2 MB from the 1 MB it currently is.
Given the extreme volatility, investors have become slightly wary to sink money in, but year-to-date, bitcoin has shot up more than 300% which is what is bringing investors in.
Hopefully the volatility can slow down, and these currencies can rely less on speculation for their pricing as time moves on.