After reaching several record highs in price, bitcoin has gone back down as the price begins to correct itself. The currency went to an all-time high of $7,601.39 on Sunday, November 5th where it then dropped down to around $7,400 only a few hours later.
This represents one of several times that bitcoin has not been able to hold a price above $7,400, and it could show a price ceiling that investors have yet to overcome. So, what is in the way of the world’s largest cryptocurrency by market capitalization surpassing the $8,000 mark?
One of the reasons behind the price dropping down is the short-term pullback which has broadened the spectrum of investors who are scared of a price drop and has resulted in just that. Another reason is the looming Segwit2x hark fork that is occurring and essentially creating free money. It could become the opposite of that, which is scaring investors. Many investors are realizing that the idea of forking is something that is not fully necessary. The other issue with the fork is that it could create uncertainty in the market leading to a further price drop. The uncertainty is the result of the idea that the forks are essentially creating money out of thin air.
Several economists have noted that this most recent fork could become unsuccessful and result in a lower price for both the new currency and bitcoin respectively.
At the time this article is written, Bitcoin is hovering around $7,400 and looks like it may be dropping slightly. The hopes are high that the price will stabilize around 10% lower than the peak as this is the usual correction amount. Given that this market is relatively new, no one can be sure what will end up happening to the price of the currency.