The recent dramatic uptick and downturn in the price of bitcoin over the weekend shows that the new option to trade futures may end up being stronger.
The most popular cryptocurrency by market capitalization dropped over the weekend by over 20%. This is the fourth time in the past month that the coin has dropped over 20% with gains following.
In around four weeks, the coin has gone up by a solid 61.5%, which shows that the drops may be helping to equalize the high price rather than showing a bearish reversal in the trend. Since the currency is so new, the estimate on price correction has yet to be fully established.
The current price action could show that a price correction could be as much as 20%, compared to traditional markets that usually sit around 10%. The coin managed to drop by almost $1,000 to a price of $5,507 over the weekend showing some amount of uncertainty in the future of the coin. Developers have been working tirelessly to try and fix the issues with the coin, but none have fully worked.
After the group of developers behind the SegWit2x update decided to cancel the new addition to the platform, the price of the offshoot currency, “bitcoin cash” shot up by a solid amount. On Sunday, a coin known as “bitcoin gold” launched to help ease the issue of scalability on the coin. Scalability has been one of the main issues with the coin as the network is only made to handle a certain amount of transactions.
Since that amount is relatively small, the issue with conducting a wide amount of transactions has been the main issue for the currency. Hopefully over the next few weeks, developers can help solve this issue and move on from the scalability problem.