Bitcoin: Buyers Return to Market After Deep Dive Monday

Bitcoin: Buyers Return to Market After Deep Dive Monday

Bitcoin: Buyers Return to Market After Deep Dive Monday

$BTCUSD

  • Investing and trading in Bitcoin is not for novices or the feint of heart.

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 cryptocurrency is currently trading $6,758.9351, as evidence emerged that Bearish investors started to cover their Short plays.

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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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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