The month of November has proved to be quite drastic for the asset in terms of its price and market capitalization. After showing promising volatility in the past month while remaining stable in the range $6,000, bitcoin has dropped quite significantly this month, and at the time of writing, it currently stands at $3,619, down by around 16% in the past 24 hours (as per www.coinmarketcap.com).
Here is the graph for the past month showing bitcoin’s price fluctuations.
Now, this price drop has the entire crypto world in frenzy. The crypto twitter has been flooded with tweets from both the proponents and opponents of the bitcoin mania. People who have openly tagged bitcoin with malicious words are now stepping up on the gas. While proponents of this asset are doing whatever they can to defend the asset, owing to the possibilities that it provides, the opponents aren’t stopping.
The volatility that is being shown by this asset right now is not new. We have seen the asset go through extreme ups and downs in the past as well. One day the market is seen shooting up and the very next, it is down on its knees again. Last year’s bitcoin’s bull run is the most prominent in this regard when the asset almost touched $20,000, before dropping down by a huge chunk again over the next few months.
This kind of volatility is the reason why the trust of the general public is very low regarding this space. Institutions and investors also hold back from entering this space owing to this uncertainty associated with this asset. It is also one of the reasons why a bitcoin exchange-traded fund (ETF) has not been approved by the regulatory body United States Securities and Exchange Commission.
Due to such price drops, it also becomes natural to hold back from using bitcoin as a way of making payments. Instead of using this asset as an actual currency, people tend to use it aa s source of gaining profit in fiat owing to the price fluctuations that it presents forward. With this recent drop, many people have lost a large amount of investment money. This is the reason why this space is ‘not so much’ trustworthy. With bitcoin down to an embarrasing low mark, it will be interesting to see how things pan out for it. If this asset is to grow and mature, it needs to be more stable and mature so that a general sense of trust is established regarding this space.