Digital uncertainty: what are the sharp fluctuations in bitcoin augustamnica link
24 August 2019, 10:24
In August, the bitcoin exchange rate showed severe uncertainty by fixing at the level of $10 thousand and sequential growth ($12 million) before the fall during the day, almost $800. Market analysts say about the close connection of digital coins with a trade war the US and China. While the state does not specify the conditions of foreign trade of the world, bitcoin exchange rate will fluctuate.
- © Jaap Arriens
In August, the bitcoin exchange rate showed serious instability. The first sharp drop was recorded in the middle of the month — then the digital currency has lost 8% over night. In the next seven days, the coin played a fall and at the end of the week reached $10.8 thousand Then a course on digital currency collapsed by almost $800.
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Bitcoin reacted to the statement by Secretary of state Mike Pompeo, the TV channel CNBC about the need for strict regulation of operations with digital assets.
Interestingly, in July there was a similar decline rate amid criticism from the President of the United States Donald trump.
Experts believe that the concerns of the us government caused the project to Facebook to launch its own cryptocurrency Libra.
«The major risks to the Libra will depend on what traditional currencies will be tied to this project and what role it will play US dollar. If the currency is closely linked with the dollar, it may lead to the coexistence of sovereign currencies with digital currencies oriented to the us currency,» — said the expert RT International financial centre Gaidar Hasanov.
The expert also has not excluded that the development of the Libra project may push the people’s Bank of China to issue its own cryptocurrency pegged to the yuan to maintain the local economy.
On the dynamics of the cryptocurrency is also affected by trade disputes between Washington and Beijing.
«We have seen that at the time of aggravation of the situation between the US and China on trade tariffs, investors were the demand for gold and crypto currencies, so the bitcoin price rose to $12 thousand,» — said in a conversation with RT private trader Alexander Boyarintsev.
Hope for a trillion
Analysts at market research Asset Research Digital cryptocurrency called another key factor that can significantly affect the exchange rate of bitcoin in the future. We are talking about halving the reward for mining.
Mining is «mining» cryptocurrency using high-power computing.
Following such a reduction will occur in 2020. The company estimates that in may of next year, the bitcoin exchange rate can soar to nearly $60.6 thousand
Researchers Digital Asset Research found an interesting pattern. They report that after each reduction the reward for mining bitcoin goes up, increasing by about a third. Thus every next peak becomes larger than the previous one.
Thus, while maintaining this trend bitcoin can reach its ceiling in September 2021, which will exceed $60.6 thousand However, the study said that this appreciation needs an infusion of about $1 trillion in the market of digital currency.
RT interviewed experts do not expect considerable growth of the digital currency until the end of 2019. So, the Director of the Academy of management Finance and investment Arseniy Dadashev said that in the near future, bitcoins could fall to $8 thousand
«If you calculate the market capitalization of bitcoin based on the number of active users, it is equal to $100-120 billion. in Other words, a good reason for growth of prices in the moment, and rise to $13.5 thousand, most likely, occurred on the background of manipulating the rate by trading platforms,» — says the expert.
According to estimates of the Gaidar Hasanov, in the medium term, bitcoins will be traded in the range of $9.5 thousand to $10.8 thousand in the long term However possible and rise to $12 thousand Like many others in the expert community, Hasanov pointed out the situation with trade wars as the reason, which will affect the exchange rate of bitcoin in the near future.
«Bitcoin has become sensitive to geopolitical news. The deterioration of the situation and the risk of a new round of trade wars increases the rate. When positive expectations bitcoin exchange rate is reduced. This situation may continue for some time because the stakeholders are not yet clear plans for the settlement of commercial disputes», — said Hasanov.
At the same time the forecast of Alexander boyarintseva on the dynamics of the main cryptocurrency a bit more optimistic. In his opinion, the price of bitcoin drops below $10 thousand, and before the end of the year, the expert suggested the increase to $15-20 thousand
Bitcoin began to grow rapidly in 2017 — with $900 at the beginning of the year the e-currency soared to a record peak of $20 thousand After this bitcoin as abruptly rushed down. With the end of 2018, the cryptocurrency was trading around $3 thousand waiting for the new summer growth in 2019.