Bitcoin: Buyers Return to Market After Deep Dive Monday
Bitcoin halted a 2-day correction as speculators saw a 29% dive from its record high as an excessive response to a technology upgrade being cancelled.
The drop earlier was as much as 15% Friday, when investors were prompted to switch into rival technologies.
Bitcoin Cash, an alternative that split from the original bitcoin in August, has risen about 19% since Friday, according to the data
We have seen similar steep falls in Bitcoin throughout the year, specifically in June and September, but each time a pullback happens new investors come in to buy the new asset class.
While markets had been focusing on BTC’s more than 640% rise this year, Bitcoin cash was gaining popularity because of its larger block size. That’s a characteristic that makes transactions cheaper and faster than the original, a Bitcoin transaction take about 20 mins to complete, too long and cumbersome for Wall Street’s comfort.
The when a few member of the cryptocurrency community canceled plans to increase Bitcoin’s block size last Wednesday, a move that would have created another offshoot, some supporters of bigger blocks rallied around Bitcoin Cash.
The volatility has been extreme, and comes along with growing interest in cryptocurrencies among regulators, banks and fund managers.
The new asset has become too big for many on Wall Street to ignore. The digital currency has a market value of about $110-B now.
Volume across Bitcoin exchanges jumped to 436,021 ‘coins’ Sunday, the highest since September, the data show.
And BitMEX, an exchange for cryptocurrency derivatives that allows Shorting, saw record activity on Sunday, its CEO said early Monday.
Again, investing and trading in cryptocurrencies is not for novices or the feint of heart.
Have a terrific week.
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