Bitcoin has undergone a healthy rise over the last few weeks. Spiking to about $745, many questioned whether the digital currency was on the verge of hitting the $800 mark, which seemed relatively likely at the time considering bitcoin’s ongoing ascension. Sadly, things didn’t quite turn out that way.
Following rumors of newfound bitcoin regulation in China, the price ultimately fell to around $705 at press time, causing many investors and crypto-enthusiasts to panic. The price is now beginning what appears to be another gradual jump to the top, currently sitting at the $709 mark, but a $40 drop creates some serious ground to cover, and things are not likely to improve overnight.
The good news is that the rumors stemming from China are exactly that… Rumors. They have not been confirmed, nor have they been completely debunked, so it’s necessary to take these stories with a grain of salt. However, granted they aren’t true and China is not responsible for the drop, then what the heck is? Leaving China out of the mix is not necessarily a good thing; it actually places us back in the dark of wondering where things stand. If China isn’t affecting the price, who’s responsible?
Studying bitcoin’s present methods, it’s likely the coin won’t stay down for long. The fact that it is already jumping back up is a positive sign, but the recent fall serves as undeniable proof that the bears are working hard to get their way. No matter where bitcoin goes or how far it rises, a bear market can occur at any moment. This is something that continues to put investors on the edge, and unfortunately, it’s impossible to completely predict where bitcoin will move.
For the most part, it’s probably a good idea for investors to lay low for a while. Stick around and watch the market with a set of clear, open eyes. Once stability arrives back on the scene, by all means, go for the gold. Until then, it might be smart to play it safe.