Price of Bitcoin Shoots Back Up As Emotions Calm Down
After dropping a good amount over the course of mid-September, bitcoin is back up. The digital currency dropped as much as 14.7% last week reaching a new low since early August of $2,951.15.
Bitcoin has since bounced back remarkably as its volatility proved itself this week shooting up a massive 34%. The coin was trading at $3,968.37 as of Monday, September 18th. This number may be lower than its recent peak of about $4,950, but it is a good sign for bitcoins recovery.
The sharp decline in bitcoin can be attributed to a few different factors. One of those and the most likely cause is the Chinese crackdown on the currency. Several of the country’s largest bitcoin trading exchanges announced that they would be closing by the end of this month following legislation from the Chinese government banning digital currencies as well as initial coin offerings.
Bitcoin declined slightly last week after JPMorgan CEO Jamie Dimon stated that it was a fraud comparing it so the tulip bulb mania of the 17th century.
Some are saying that the market is recovering partly due to the realization that China does not have domain over the market’s entirety and that the initial shock has subsided.
The founder and CEO of Hong Kong-based token exchange Gatecoin, Aurelien Menant, stated that “the market is realizing that it doesn’t really matter what happens in China anymore, the exchanges based there no longer dominate trading activity and more mature liquidity from institutional players in Japan, Korea and Europe is providing a boost to this next bull cycle.”
Menant also stated that “It’s also important to remember that the crackdown in China was targeting the activities of the local exchanges for not complying with the Chinese financial regulatory environment and not a crackdown on bitcoin and blockchain technologies.”
Although bitcoin did fall recently, it is still up a staggering 293% since the beginning of 2017, and sees no sign of slowing down.