September has seen a further downturn in the value of bitcoin. On September 24 it slipped from $9,700 to $8,700, a further 10%. It’s the most significant move since the cryptocurrency slipped over 13% on 16 July this year. Although currently, bitcoin investors will see a year-to-date return of 126%, this bearish break is a cause for concern among those who are backing the cryptocurrency market.
From Bull to Bear
The turbulence of bitcoin’s price history is well documented. In terms of scale, it is matched only by Dutch Tulip Mania, the first documented financial bubble in 1637, when the most highly coveted tulip bulbs were being sold for 10 times the annual salary of a skilled craft worker, resulting in an overnight market crash. Direct comparisons with bitcoin are hard to draw because of the lack of accurate records in seventeenth-century Holland, but with bitcoin prices rising from around $700 to $19,600 in 2017, crypto critics are drawing parallels and are skeptical of the longevity of cryptocurrency.
After the bearish momentum took control on September 24 and prices fell below the area of technical support, bitcoin value fell from $9,300 to $8,600 in just 15 minutes. Similarly, other cryptocurrencies suffered from the rout, including Ethereum, Litecoin, and XRP.
Bitcoin Price Prediction
Some speculate that this recent raft of losses may erode market sentiment for an asset that has proved particularly sensitive to breaking news, and result in a difficulty to sustain a bullish shift back upward in value. However, despite the recent downturn, bitcoin is still the best performing asset class in 2019 by some margin. Investors who buy the dip may well find themselves rewarded.
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