After facing major price drops this month, bitcoin now looms around $4,149 at the time of writing, as per CoinMarketCap. But this $4K range has the asset revolving around it for quite some time.
Last month, bitcoin gained much attention and praise from the financial community as it showed much stability in its price while looming in the range of $6,000. It carried on its streak of stability for quite some time as the trust among the general public regarding it increased.
But this month, the asset showed major price drops and as a result of these, a lot of people have lost a lot of money. Following consistent drops within a matter of days, bitcoin dropped down even below the $4,000 mark. The entire crypto twitter went into a frenzy as a result of this drop. The proponents of bitcoin stepped out to calm the people down and asked them to stay patient whereas on the other end, people who believe bitcoin is bubble went all in on lambasting the asset. The opponents of bitcoin strongly believe that it is just a tide that will settle with time.
Since the major drops, bitcoin has now stuck to the $4K range. The asset is revolving around this mark. Will it go up from here or will it go further, it is something that cannot be predicted. Speculations are made by different people but it is very hard to precisely predict the behavior of this volatile asset.
As the bitcoin world is pretty nascent, it still has a lot of issues associated with it that have marred its reputation, with volatility being just one of them. Manipulation has been linked with this world as well. As said, prices are manipulated by major whales in the game to gain as much profit for themselves from the market as possible. Now in the hindsight of this drop, there may be whales accumulating bitcoin for their personal benefits.
These issues like volatility, manipulation, lack of regulation etc. are some of the reasons why a bitcoin exchange-traded fund (ETF) has not been approved as of yet by the regulatory body in charges, the United States Securities and Exchange Commission (SEC). If the public trust among the public regarding this asset is to be increased, the issues like major prices spikes and drops, manipulation etc. need to be solved as soon as possible.
Edited On 12/2/2018 3.36 PM PKT for fact correction.