Bitcoin Crashes Just in Time for Christmas
Bitcoin investors will have had a shock today. In the first major reversal for some weeks, the price of a single coin against the US Dollar slid dramatically – down to $12,201 at its lowest overnight!
If it continues, it will be a far less merry Christmas for Bitcoin holders, who have become accustomed to huge gains in short periods of time.
The crash finishes off a volatile week of trading after the cryptocurrency peaked at an all-time high on Sunday at $19,666, having started the year at $1,000, fuelling fears of a major bubble in the asset class.
Is a collapse imminent? It is certainly not guaranteed. Earlier in the year, the price crashed in a dramatic fashion after China’s government moved to ban initial coin offerings as well as banning all cryptocurrency exchanges from operating in the country. With major fears of further government intervention looming, the price headed into a bearish pattern, moving nearer to the $3000 mark for some time after Beijing’s announcement, however this reversed in time and shot above $4000.
That change in value might seem like nothing compared to the astronomical levels of volatility in the asset which were to come later in the year, but at the time there were major fears of a collapse in the price. This example shows that Bitcoin has the ability to keep rising despite major upsets, and so perhaps it is not time to write it off amidst the current correction in the runup to Christmas.
Today we are watching: #xbtusd #xbteur
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