Bitcoin Experiences Slight Reversal On Bullish Trend. The bitcoin had been going up in value since April 6 as the currency had moved from $6,600 to around $7,200 in a matter of days. But now the bitcoin has experienced a sudden drop in its value, thus reversing the bullish trend that the currency had been going through. It is unclear at this moment as to what has caused the drop, but it is causing concerns as the market cap keeps dropping.
The bitcoin had a drop during the middle part of trading on Monday. The currency went from $7,200 down to around $6,700 in about two hours. This is according to reports from Coin Market Cap, although the Bitcoin Price Index from CoinDesk states that the currency went down to $6,500 at one point before it could recover.
The currency has trading a little more than $6,700 since its reached its bottom point. There have not been many changes in its value since then.Advertisement
The market cap of bitcoin has also fallen down to $114 billion. Although it is still by far the strongest performer on the cryptocurrency market, the currency has also been stuck with a market cap close to the $120 billion threshold since the start of the month. The main concern is that the market cap of the currency might drop to below $100 billion for the first time since the end of last October.
The 24-hour trading volume for the currency has also been consistent even with this sudden decline in its value. The currency is being traded with a value of about $4.6 billion exchanged every day, a total around par for the currency.
The drop in the currency’s value comes as it had been going through a slight bull market. This came from a lack of restrictions or other problems coming onto the currency, although it is still far from its peak value from the past year.
There have been expectations that the bitcoin might go up in value in the future. This comes as the bitcoin has been growing in popularity over time with some major investors planning on getting into the bitcoin and cryptocurrency industries. There have been reports that the Soros Fund Management group is going to get into the cryptocurrency field. Information on when the group will get into the field or what it will invest in are unknown, but this is a significant development as the Soros group is one of the most popular influencers on the market.
Venrock is also anticipated to get into the cryptocurrency field. This is a venture capital group that is operated by a financial group that was originally formed decades ago by John D. Rockefeller. Additional details on what will work here are unclear at this point.
The sudden drop in the bitcoin’s value has been noticed on some other cryptocurrencies. These include drop of about 3 to 5 percent for many other currencies. The drops are not overly significant as most of these currencies are operated on different platforms. The Verge currency has experienced an increase by more than 10 percent in the past day, for instance.