In the last few days, Bitcoin has seen a new bout of price volatility. Dropping from almost $4900 to below $3100 and back up to $4300, crashing prices are leaving many investors wary of what lays ahead for cryptocurrency markets. Fortunately for the undeterred BTC investor, now may be a great time to invest in Bitcoin and other coins that are connected to its value.
- The price move was not connected to any major event involving Bitcoin. While there has been some talk over whether or not BTC’s price slump may be related to New York’s Bitlicense(also this connected with news from China and South Corea). While this still-unfolding regulation is definitely something to keep an eye on, the details of the Bitlicense were released over a month ago. Any Bitcoin dumps in relation to it would probably have already happened.
- The Bitcoin market is still fairly illiquid. This means that, if any large Bitcoin holder sells for any reason, they could single-handedly crash the market by +10%.
- Bitcoin may have even stronger prospects than ever for the future. Merchant acceptance of Bitcoin is consistently growing. As more merchants accept Bitcoin and other cryptocurrencies, it will make more sense for everyday consumers to own and use them in place of credit cards and other high fee payment systems. In what would be a huge boon to Bitcoin, eBay may be in the process of implementing it as a payment option on its site.
Further Bitcoin volatility is likely as the market finds a new price to settle on, but now may be a good time for the stronger-stomached to possibly buy in at a discount.