Bitcoin Traders Looking at Fundamentals in Here
Monday, Bitcoin was stable after dipping below $8,000 early, as traders saw signs of a increasing demand for the digital currency.
Bitcoin bounced from its intra-day low of low of $7,900.3 Monday.
Currently, Bitcoin is trading at: 8,042.9048,-48.1001, or -0.59%, as of 2.04a BST, the market is open.
The bounce in Bitcoin signaled renewed investor appetite to buy weakness in the cryptocurrency, which rallied from a low of $6,611.0 last week.
Most investors blamed the recent plunge in Bitcoin on regulatory pressures, as others pointed to the the 17 April deadline to file US federal taxes as reason for the selloff from nearly $20,000 in December 2017.
Last week’s rally in Bitcoin was described as huge by 1 digital assets investment fund manager, who predicts that with a resurgence in Bitcoin transaction volumes, the price of Bitcoin could top its $20,000 mark, setting a new all-time high at $25,000 by this year’s end.
“We need the fundamentals, which is the number of transactions, to catch up to this a bit. And if we see that, then I do think we’ve bottomed here and we’ve got a sustainable bull run ahead of us,” he said in a TV interview Monday.
Since the beginning of this year, the Bitcoin community has made long strides to speed up transactions and lower fees on the Bitcoin network, further integrating solutions such as Segwit and Lightning Network.
This has driven the price of transactions fees on the Bitcoin network to about $1.15, well below the $55 transaction fees observed in late December 2017. The number of transactions on the Bitcoin network at 160,000 per day now is still well below 500,000 odd daily transactions in December.
Bitcoin users hope that the digital currency’s lower fees and faster transactions will attract the attention of large merchants, paving the way for bBitcoin to become a mainstream payment option for consumers.
Ripple XRP fell 0.33% to $0.65681, Ethereum fell 2.82% to $508.65.