Another slight drop has hit Bitcoin. Following our recent price piece, the bitcoin price is hovering around $664 at press time. That’s a fall of about eight dollars; nothing to panic about, but it’s still disappointing.
When describing bitcoin’s lack of action over the last week, one source explains the coin as something that “pops and fizzles”:
“Bitcoin price pushed through an important trend-line intersection yesterday, but launch pad staff had failed to fuel the tanks. A pop and fizzle is all we got. Traders can sheath their arrows until the next chart signal… The halving event had created a sense of optimism that price would rally, and when price pushed above an upside constraining trend-line yesterday, it seemed a new wave to the previous high would erupt. However, all the market could manage was a fake-out to the upside.”
Bitcoin may be hitting a stagnant point, but could things heat up by November? Some analysts seem to think so.
One thing purported to cause a spike in bitcoin is Donald Trump’s campaign. It has been said that if Trump wins the presidency, financial markets could undergo a period of relative turmoil, allowing bitcoin to rise and take control of America’s monetary reins.
Windsor Holden of Juniper Research explains:
“If Donald Trump becomes president of the U.S., there is the very real prospect of turmoil on world markets – the Economist Intelligence Unit ranks his presidency within the Top 10 global risks… However, bitcoin trading would thrive in such an environment, at least until the impact on major fiat currencies becomes clear.”
Another action could be Trump’s proposed halt of remittances from illegal aliens to their families. Tariffs would be placed on these remittances, forcing undocumented immigrants to help build Trump’s border wall. To avoid those taxes, several illegal workers are slated to switch over to bitcoin, which could potentially help the currency’s price to jump significantly.
But we still have four months until a decision is made. Until then, bitcoin is undergoing temporary changes, nothing significant, and the present sentiment among analysts seems to be mutual – that investors should not consider further pushes into bitcoin territory until higher numbers are witnessed:
“The caution, mentioned during the past two weeks, that traders should wait for price to convincingly break – and establish – above $680 remains a prudent choice.”
It’s repetitive advice, and yet considering bitcoin’s recent lack of “decision power,” it also seems to make the most sense.
What are your thoughts on the bitcoin price? Post your comments below!
Images courtesy of Quartz, Snopes.com.
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