In the past 24 hours, Bitcoin has taken a drop, but why? Previously, the world’s top cryptocurrency has crossed the $13,000 line for the first time. The asset shot up to roughly $13,000, and many were celebrating that things were going well for the coin.
The expansion came after the news that PayPal will allow customers to transact using bitcoin. This is big for many traders and enthusiasts everywhere. It was sure to launch bitcoin into the mainstream universe, making it comparable to cash on all levels.
Although, it looks like a part of these positive vibes are falling. The price of the worlds’ biggest cryptocurrency has dropped to about $200 in the previous day. Then the asset is now trading for about $12,800.
There are several different explanations; however, there are two that are more realistic. The first is that the hype is somewhat dying down. And the second is likely that some bitcoin holders are selling all or parts of their stashes. Now that bitcoin’s price seemingly taken a few steps forward and achieved a new high for the year, short-term traders and investors could potentially ask for some quick dollars in their future.
This is a mistake for some reasons. Bitcoin is meant to be held for a long time. As soon as many people trade with theirs in, they are likely to knock the price down for anyone else. Next, if Bitcoin is showing straight levels of appreciation, there may be more relative as soon as it comes.
As of now, all investors can do is to hope that the downward trend is only temporary and won’t lead to grave results. Bitcoin is now headed to a decisive end by 2020. With two months left in 2020, it is perhaps that the positive end is a possibility.