After a massive rally during the month of October, Bitcoin is peeling back a little bit today, moving downward from a height of $14,100 down to around $13,500 this morning.
The household name cryptocurrency surged a full 29% in October, while proponents cited institutional buy-in, national government policies around the world, and greater access for small investors, as well as trends based on metrics and the blockchain reward halving that happened in May.
Bitcoin isn’t the only gainer, either – Litecoin, Bitcoin Cash, Ripple and Ethereum are all up over the past weeks.
In joint coverage at Coindesk, Bradley Keoun, Omkar Godbole and Sebastian Sinclair look at current trends, noting that the upcoming election tomorrow may cause quite a bit of market volatility.
“Markets could see extreme volatility if the election results are murky, and the Federal Reserve has a regularly scheduled meeting just days afterward,” the group reports, citig additional analyst sentiment in the general community that the watershed election could change a good deal of things in global markets and elsewhere.
However, when everything shakes out, Bitcoin is likely to come out looking pretty good. Traders who have been bullish for a while are telling others to buy on any future dip, if that dip occurs.
“Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the Bitcoin price,” JP Morgan analysts on the bank’s Global Quantitative and Derivatives Strategy team wrote recently, according to Forbes reporting by Billy Bambrough showing some of this bullish sentiment in action.
Then there’s the enduring solvency of Bitcoin value, as mentioned by Scottish finance expert Temple Melville in a Cryptonews.com piece:
“Governments have recently thrown all the rule books of economics out the window. The result of that is that there have been trillions of dollars and pounds, euros, yen, you name it, that have been printed,” Melville says.
“Each new dollar reduces the purchasing power of every dollar in existence. So, to take bitcoin (BTC) as an example, there will only ever be 21 million BTC, it’s built in to their system. So if you only have one bitcoin you’re only ever going to have one bitcoin out of 21 million.”
Watch this space for more on BTC and price hikes.
