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Bitcoin Price Watch: Currency Settles at $6,800 After Drop to $6,700

Bitcoin is currently standing at $6,800. After a weekend rise to $7,000, the coin’s ascension was halted suddenly and fell back to the $6,700 mark. It has risen by over $100 since yesterday.

The previous rise could be attributed to major financial players getting involved in the crypto space. After repeatedly calling bitcoin a “bubble” and “mere speculation,” wealthy hedge fund manager George Soros gave his company Soros Fund Management a clear path towards cryptocurrency investments and announced that the venture would start trading cryptocurrencies within the coming months.

Considering Soros’ power in the financial industry, it’s safe to say that his previous statements regarding bitcoin’s legitimacy (or lack thereof) delivered some serious gut punches to advocates.

His entry into the crypto-arena ultimately cleared the way for other financial magnates to become involved. Not long after Soros’ announcement, the famed Rockefeller family of New York released the news that their company Venrock – the venture capital firm of the Rockefeller Foundation – would be partnering with cryptocurrency and blockchain advisory firm Coinfund.

Both groups can allegedly bring immense power to the digital asset world, and push it further towards mainstream acceptance and full financial recognition.

Despite this news, it appears the price of bitcoin is “still up for grabs” in a sense, and leaving many analysts examining whether bitcoin is a bubble or an actual currency that could experience recovery in the coming months.

A group of Barclays analysts sits in the former category. They explain that bitcoin’s price is not likely to see the surges it did in 2017, and they compare bitcoin’s previous rise to the spread of infectious diseases, as more investors and one-time enthusiasts ultimately became “immune to its appeal” the way they might become immune to dangerous health hazards.

While this seems like an exaggerated and somewhat over-the-top comparison, the analysts used actual studies from the field of epidemiology (which deals with the spread, distribution and control of infectious diseases), and built their current model around those studies, claiming that the prices “tend to rise when infections spread from one buyer to another.” Ultimately, the power of bitcoin spread mostly via word of mouth, particularly to those who had a “fear of missing out.”

They also say that while the droves of new entrants to the cryptocurrency market did help to improve the overall price of bitcoin, the subsequent crash led to several exits amongst people who are now “immune” to the idea of getting rich overnight. As more time passes, fewer people will be susceptible to the power of bitcoin, and will seek to stay as far away as possible.

The economists summed up their arguments by saying:

“This occurs with infectious diseases when the immunity threshold is reached, i.e. the point at which a sufficient portion of the population becomes immune such that there are no more secondary infections.”

At the same time, cryptocurrency exchange platform Gemini is now rolling out bitcoin and ether block trading as a way of reducing the impact large orders have on the market. This suggests that crypto purchases and trading have not lost all their popularity, as many are still trying to get their hands on as many bitcoins and ether coins as possible.

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Bitcoin Price Watch: Price Falls, but Trends Remain High

At press time, the father of crypto has dropped by roughly $100 and is trading for approximately $6,680. Overall, this has been a relatively positive week for the master of cryptocurrencies. While the price may be down for the time being, the asset did manage to retain its $6,700 price range for several days. This is big news considering how often the currency has dropped to the low $6,000s following a small bull run. In addition, analysts do expect it to clear the $6,800 resistance line by next week, so enthusiasts have a lot to look forward to. From a legislative point of view, bitcoin may be trapped in limbo. As we reported yesterday, the Securities and Exchange Commission (SEC) has decided to postpone its decision regarding the approval of a potentially new bitcoin ETF from the VanEck SolidX Bitcoin Trust. The decision had originally been moved to September 30, next weekend to be exact, but has since been “relocated” to late December. The good news, however, is that the SEC is taking time to fully understand the project and the circumstances at hand before rendering a “yes” or “no” answer. They haven’t responded in the negative; they are simply looking for additional commentary from industry experts to make sure the ETF has traders’ best interests in mind. This is a good thing, and a decision postponement should not be what causes interest to die down. Bitcoin has managed to remain in the high $6,000 range despite this news, which shows further evidence of growing maturity. However, it does appear to be moving in a “sideways” direction. Though its avoiding bearish pullback, trading in Asia ultimately saw very little action on Sunday morning. This behavior was repeated in Eastern Europe, and its present price is believed to be the result of actions by long-position traders. Overall, trends suggest that the price is going to continue moving upward – at least for now – though movement could be slower than investors might like thanks to hardcore resistance levels bitcoin will probably encounter in its upcoming ascension. If bitcoin can surpass its present resistance, we could wind up witnessing $7,000 once again. However, if bitcoin were to fall below current support levels, the entity may find itself trapped at $6,500. In a recent discussion regarding bitcoin and the technology behind it, venture capitalist Tim Draper explained: “It’s so important for everyone. This is the beginning of something that’s bigger than the internet ever was. The internet went after information, communication, gaming and entertainment. They are all $10 billion to $100 billion-dollar industries. Maybe [one or two are] trillion-dollar industries.” Bitcoin Charts by TradingView The post Bitcoin Price Watch: Price Falls, but Trends Remain High appeared first on NullTX.

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