From $13200 to $9684 within 7 days – What is driving the Bitcoin market?

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For Bitcoin, the month of July has been a roller coaster ride. Since July 10, the most popular digital asset has hit some parabolic highs and lows – taking a steep plunge from thirteen thousand two hundred dollars ($13200) mark to hitting all-time lows at nine thousand six hundred eighty-four dollars ($9684) within a matter of just seven days. 

Nevertheless, the significant decline of nearly twenty-six percent (26%) is speculated to have resulted due to the sellers monopolizing the market and driving Bitcoin even further below the support level figures at eleven thousand dollars ($11000) and ten thousand seven hundred dollars ($10700).

From $13200 to $9684 within 7 days - What is driving the Bitcoin market? 1

The Trump effect

Alex Krüger, a popular economist and market analyst, indicated the government of the United States played a key role in regulating the Bitcoin markets. According to him, the concerns raised by President Trump and his Treasury Secretary over Bitcoin’s alleged involvement in funding terrorist activities and the highly uncertain nature of its market may have addressed the elephant in the room. 

Krüger is of the view that fraudsters somehow manage to find gaps in the existing system as well and do not essentially need Bitcoins to pay for questionable activities. Unfortunately, though, the crypto markets have reacted adversely to the whole situation.

The US government stance may have worked well for Bitcoin

On the contrary, some industry experts also believe that the US government’s anti-crypto stance may have actually worked in the coin’s favor. 

Travis Kling, the founder of Ikigai Asset Management, adds that given the amount of attention the currency is drawing, its mainstream acceptance is already established.

In the press release, Treasury Secretary Mnuchin had confirmed that the country’s financial watchdogs such as FinCEN and SEC will be watching cryptocurrency trading and activities like a hawk. By no means will it be treated differently than other forms of physical and digital transactions, claimed the Secretary.

Barry Silbert of Digital Currency Group, remarks that when Secretary Mnuchin chose to address Bitcoin officially from the White House, little did he know that it would, in fact, validate the currency and escalate the optimism around it.

Other contributing factors

A trader and a speculator named Satoshi Flipper, states that there is more to Bitcoin’s precipitous highs and lows than meets the eye. To start with, the launch of digital trading venue, Bakkt, by Intercontinental Exchange and Fidelity, which will manage custodial services of digital assets, may have impacted the Bitcoin price run.

In addition to that, the next major event in Bitcoin’s history, the Bitcoin halving, is scheduled to occur on May 2020. The halving event is likely to attract long-lasting drama in BTC’s price performance, simply by speculating the supply and demand of Bitcoins in the market.

Is Bitcoin mining driving the Bitcoin rate?

During an interview on CNBC, CEO of BKCM, Brian Kelly, mentioned that several miners around the globe have now taken a backseat. Considering the number of Bitcoins stashed, which is supposedly enough to get them through the next twelve months, the miners have chosen to cut the supply in half. Needless to mention, higher demands balancing lower supplies will evidently get the price on the rise.

For many, it is not the range of decline but the speed at which Bitcoin took a nosedive to below ten thousand dollars ($10,000) mark that startled them. 

While speculations continue to pour in about Bitcoin’s ability to stand the test of time and reduce its market volatility to some degree, Peter Brandt, a bestselling author, tweets that the currency should be able to pull off a market cap correction of eighty percent (80%).

The association with Libra

Last but not least, it is hardly ever a case when Facebook’s disputable currency Libra is not associated with Bitcoin’s market performance. Amidst severe nitpicking statements and strong backing, Libra may have managed to spike some real interest in Bitcoins and other cryptocurrencies in general. 

It is anticipated that Libra will be bound by the shackles of a complex regulatory framework and highest-level scrutiny, however, it does not deter investors around the world from going long on the Bitcoin.

Manasee Joshi

Manasee Joshi

An avid reader and an enthusiastic writer, Manasee recently chose to dedicate her time doing freelance writing. A degree in English literature and experiences in Administration, HR, finance, literature, creativity and innovation tucked under her belt, she crafts engaging and compelling content for crypto and blockchain audience.

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