Wild Swings Observed In Bitcoin Price Post $10,000
2017 has been a historic year for Bitcoin enthusiasts and investors, and more specifically the last month when Bitcoin prices have grown over 100% touching a new all-time high above $11,000. But for now, it seems that the euphoria around the cryptocurrency ends, as Bitcoin prices are subjected to extreme wild swings in the past 24 hours and the volatility seems to be at the peak.
In less than 24 hours, Bitcoin prices have plummeted by 20% to sub $9,000 after hitting its all-time high above $11,000. After Bitcoins unprecedented run above $10,000, there have been alarming signals and warning signs from many of the cryptocurrency analysts highlighting the fact that Bitcoins looks to have entered the bubble territory and a major correction soon can’t be neglected.
Deputy governor for the Bank of England on Wednesday said that before investing in digital currencies at this point-in-time, investors should “do their homework” properly.
Bitcoin exchanges like Gemini and Coinbase have registered a massive spike in the traffic with the exchanges almost crashing after the heaviest selling of the season was seen. Coinable soon took it to its Twitter handle to inform its users by tweeting “We are experiencing all time high traffic at the moment – 8x the peak we saw in June”. With reports of services outages and delays, a panic-like situation has gripped sellers causing a further spiralling effect as the exchanges face a very difficult time completing the transactions.
The rapid sell-off for Bitcoin can be attributed to the fact that Coinbase - one of the world’s biggest cryptocurrency exchanges, has recently received an inquiry from the U.S government asking them to hand over data of about 14,355 account holders, in a suspected tax crackdown. A security expert from University of Surrey - Professor Allenwood tweeted that “Coinbase has been subpoenaed with a request for records of all transactions in amounts over $20,000 between 2013 and 2015.”
Bitcoin Futures Contract by the CME Group will start in December and once the contracts are live, more stability in Bitcoin price is expected while curbing the violent swings. Earlier this month - Leo Melamed, Chairman of CME Group said that by bringing the Bitcoin futures contracts we will be controlling wild swings in its prices and “tame” Bitcoins. He even went to the extent of saying that Bitcoin will be the New “Asset Class” of the future.
In addition to the CME Group, Nasdaq Inc too is planning for similar sort of Bitcoin Futures contract to begin from the Q2 of 2018. Additionally, many other financial institutions are also planning to come with their own Bitcoin-based investment products to be launched by next year.
As for now, nothing can be said with certainty as to how Bitcoin will move ahead in coming as the cryptocurrency has always been subjected to huge volatility ever since its existence.