Investors got an unpleasant surprise Wednesday morning – it wasn’t quite the horse’s head in the bed that it could have been, but as Bitcoin trades at around $8400, there’s reason to believe that something big and bad happened over the last few days. But what?
Some are pointing to the anemic launch of the much-anticipated Bakkt Bitcoin futures platform, which only triggered a few small trades in its first few days of action, despite confident promotions by ICE and NYSD chair Jeff Sprecher.
Others are looking at technical factors – in an article September 3, Keith Wareing at Cointelegraph looks at factors like Bollinger bands, the relative strength index, and moving average convergence/divergence showing that Bitcoin may move to a lower level of support at $7700.
Wareing also suggest that altcoins could benefit as traders move their money to smaller cryptocurrency options.
“If BTC price continues on this trajectory, it could mean a slow bleed for Bitcoin, but where will people hedge?,” Wareing writes. “If past trends are anything to go by, smart money could start migrating to lower liquidity altcoins pushing the market caps of major altcoins that have been bottoming out over the last 18 months.”
Still others believe that Bitcoin’s faltering today may have to do with political or geopolitical factors like erratic POTUS activity.
Whatever it is, it’s not great for short-term Bitcoin values, but as always, the hodlers are staying put. They firmly believe that there will be higher BTC prices in the long-term, whether that’s by the end of this year, or the end of next year, or by 2025.
“There are multiple drivers behind the recent resurgence. There are geopolitical, technological and regulatory drivers,” said analyst Oliver Isaacs Sept. 24,, as quoted by reporter Max Boody. “The net effect of the trade war between the U.S. and China has led to the sudden interest in bitcoin as a hedge on investments.”
Keep your eye on BTC; the only sure thing is eventual volatility.
