BitCoin’s Value Continues To Fall After Rough Week

BitCoin’s Value Continues To Fall After Rough Week

BitCoin reached a one-week low this past Monday the 26th, falling 10.11% to $2, 275 per coin. This comes on the heels of the sudden crash last Wednesday of rival Ethereum from $296 to 10 cents, although they have since recovered their losses. Since the opening print on Wednesday, BitCoin has sunk 16.6%. The fall of Ethereum and other cryptocurrency competitors caused cryptocurrency exchanges Bitfinex and ShapeShift to cease trading, which contributed to BitCoin’s decline. Trading platforms Coinbase and GDX also experienced service outages due to spikes in visitor traffic, largely caused by investors who went on a buying spree as prices for BitCoin continued to drop.

The Decline of Bitcoin

While savvy investors have tried to take advantage, the recent decline of BitCoin has been surprising to many, as the cryptocurrency was up more than 200% to start the year. Thanks to factors such as heavy buying from China and Japan, Russia’s largest online retailer announcing they would begin to accept bitcoin, and Japan’s declaration of BitCoin as an official payment method in the country in April. More recently, the three largest exchanges in China resumed withdrawals for the first time since February, which boosted the value of BitCoin. The overall growth has been dramatic, as demonstrated by the fact that Bitcoin is still up by 136% for the year, despite the recent losses.

BitCoin's Value Continues To Fall After Rough Week

However, not all were surprised by BitCoin’s recent decline in value. Notable figures such as billionaire Mark Cuban and Goldman Sachs’ head of technical strategy Sheba Jafari noted this month that BitCoin looked primed for a fall. Jafari described the cryptocurrency as “heavy,” and predicted a low of under $2,000 before a rebound (in reality, BitCoin hit a low of $2,076.) After BitCoin reached an all-time high on June 6th, Cuban suggested that BitCoin was a “bubble” that would soon burst.

BitCoin’s “Bubble” is Obvious

bitcoin bubble

The “bubble” metaphor was repeated by Bloomberg writer Lionel Laurent, who wrote that bitcoin and other cryptocurrencies might soon experience a crash. But despite negative predictions and the weeklong drop BitCoin has experienced, many analysts believe that the currency will rebound, with some even predicting continued growth in the coming weeks and months. Considering the fact that BitCoin is still at nearly one and a half times its value to begin the year, and the recent support of cryptocurrency by China and Japan among others, these predictions may be validated, but for now, BitCoin’s value continues to fall.

One cryptocurrency that that hasn’t followed the recent downwards trajectory of BitCoin and Ethereum is OneLife’s OneCoin. OneCoin is revolutionizing the cryptocurrency market with blockchain technology is oneCoin. OneCoin is growing rapidly, based on the merits of their transparency, ease of use, security, and focus on merchants. At the start of 2016, the company became the second largest cryptocurrency organization in the world.

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