Over the past few days, Bitcoin has been trying to get close and closer to $20,000, a milestone nobody believed to be possible a few months ago.
Despite its ridiculously fast growth, the cryptocurrency failed to reach it, stopping at $19,783.21 this weekend. Even more, after getting this close to the milestone, the price fell back, dropping to $18,791.76 later in the day, according to Forbes.
Ever since then, Bitcoin kept recovering, but still failed to surpass $20,000.
It’s still dangerous to invest a lot!
This last price drop confirms once again that we’re looking at a very volatile currency, not to mention that all those who were blaming it and calling it ‘a bubble about to burst’ were definitely happy, as their theories were somehow confirmed.
During the entire year, Bitcoin reached several milestones, surpassing $5,000, $10,000 and, recently, $15,000. And all this happened in just a few months, leaving a lot of financial experts and not only amazed.
Market analysts tried to find the reasons behind this speedy growth, considering rising adoption, a growing institutional interest and, of course, a constantly evolving regulatory framework.
Is Bitcoin Futures influencing the price?
Not once it has been speculated that Bitcoin futures is one of the major factors making the price of the world’s largest cryptocurrency go so high.
It’s been a week since the derivatives contracts began trading and are now trading on CMW as well.
“Bitcoin has become synonymous with cryptocurrency, and Coinbase, now with more than 13 million accounts, makes it easy for speculators to set up an account and participate in this burgeoning asset class,” said Chris Keshian, co-founder of Apex Toekn Fund. “Bitcoin has become the default cryptocurrency for retail investors,” he added.
A lot of cryptocurrency experts revealed that the technical resistance is the main reason why Bitcoin surprisingly failed to surpass $20,000. However, let’s not hurry up with taking decisions, since there are a lot of days until the end of the year and a big surprise could be expecting us.