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Bitcoin Value Drops Below $5000 And Continues To Fall

At this time last year, the Bitcoin tend was starting to hit fever pitch. With the price soaring towards the $20,000 mark, Millionaires were literally being made overnight. Throughout the entire year, I continued to be amazed at how the value kept rising but was always very aware that the price could fall just as easily as it rose.

My cynicism did attract the attention of a person who claimed to be a US Professor teaching cryptocurrency economics. He gave me a brief two-paragraph lecture as to how I was wrong, the future of Bitcoin was golden and, incidentally, that eTeknix should hire him to write about it as we ‘clearly’ knew nothing.

Well, January 2018 certainly proved him wrong and while I’m not gloating (much) it did prove my belief that Bitcoin, as a whole, was very volatile.

Period Of Stability

In fairness, I had been a lot more optimistic about the currency as 2018 progressed. Over the last 4-5 months, the price had remained remarkably stable at around $5000-$6000. In the last 48-hours though, there have been more than a few moves in the currency market that has since Bitcoin plunge below $5000 in value and looks almost certain to be sub-$4000 very shortly unless something significant changes. You can see the current trading price via the image from Coindesk below.

Why Has It Dropped

Bitcoin Cash, which is something of an off-shoot of standard Bitcoin split into 2 separate currencies last week. As such, suddenly you have various forms of what on the surface is essentially the same currency fighting it out. There’s more competition out there and with is, prices are coming down as the markets attempt to adjust.

It’s incredible to see just how far this has come in the last year. In all honesty, though, it’s even harder to predict where this will be by this time next year.

What do you think? – Let us know in the comments!