Bitcoin fell 20% over the weekend and it was not at all what they hoped for. If you are affected by this fall, we understand you, and believe me, everything will be fine soon.
Looking at the history of Bitcoin, a trader can find out that after most falls, the cryptocurrency rose back and even higher. In fact, in cases where Bitcoin fell by 20%, on average, it grew by 28% after that.
The demand for digital currency pushes prices up the last 4 weeks, in an attempt to reach a record high of $ 7,000.
So why did the fall happen? Let’s just say that the developers behind Bitcoin faced difficulties when trying to optimize the speed and costs of transactions. Uncertainty about this issue has greatly affected the currency.
Last week, the development team rolled back an update called SegWit2x due to security concerns. Disagreements between miners and developers – this is what made investors invest in “bitcoin cash” and “bitcoin gold”.
The latter was recently presented to the public with the intention of making the Bitcoin creation process less dependent on specialized equipment.
Earlier this year, Bitcoin ran into yet another nuisance: China’s rejection of cryptocurrency. Due to the fact that the government has taken serious steps to regulate the use of cryptocurrency and banned ICO (Informal Investment Promotion), Bitcoin has suffered.
However, not all governments look at cryptocurrencies. Japan, for example, began to use Bitcoin widely only a year ago, and Japan is a large economy.
On Monday, Bitcoin has already recovered by about 9%, which is quite expected, given that the long-term outlook for cryptocurrency is very positive.
Analysts expect values of 25,000 thousand dollars or even more. Other experts believe that Bitcoin may reach $ 10,000 in the period from six months to 10 months. Still thinking about those 20%?