After maintaining a relatively high stability in the past month, the ‘improved-volatility‘ run of bitcoin ended this month. At the end of the last month, bitcoin maintained its levels around the range of $6,000s and showed signs of maturing as the asset became stable. But after dropping from the $6,000 range in the $5,000, it has now dropped to the $4,000 range and is currently floating around $4,669 at the time of writing, as per CoinMarketCap.
The following graphs itself narrates what happened to its price from 20th October to today, 20th November.
Now, what might the reason behind this drop? In order to get an opinion on this matter, BlockPublisher got in touch with a well-renowned name in the crypto and blockchain world, Thomas Power, who is a member of the board of directors at BICRA, Blockchain Industry Compliance and Regulation Association.
When the price dropped to the range of $5,400 Thomas was inquired about the reason due to which this situation might have happened. Here’s what he had to say,
Heading for $3000 as miners attack each other and merge.
These are very strong remarks presented forward by Thomas Power regarding the asset. Right now, the entire crypto community has its eyes wide open to see what is going to happen to the asset. There are a lot of people that have invested heavily in the asset and they might take serious damage if this happens.
The kind of volatility that the asset is showing right now is not new. We have seen the market go through the roof one day, and coming back on its knees the very next day. Last year’s surge serves as the perfect example of this. In December of 2017, the asset almost touched the mark of $20,000 taking the entire world by shock. But as it rose up, it also got shot down.
Volatility is one of the reasons why major institutions and the general public are holding back from adopting this asset. Right now, bitcoin is largely used by people to gain profit in fiat, not as an actual currency. If this asset is to be adopted as a currency, it needs to grow, mature and stabilize so that people can use it as a method making and receiving payments, as opposed to a method of gaining profit in fiat.
Right now, the entire market has its eyes set on the asset as it tumbles. It will be interesting to see how things go from here on.