Price of Bitcoins showing consistent Declines to Near $400
The bitcoin’s price has shown a decline on the USD Bitcoin Price Index from a high value of
$455.24 to a low value of $405.72. However, it recovered to its value of press time of about $421.42 afterwards. There was a similar impact of prices on CNY Bitcoin Price Index too which reached a high value of ¥824.17. Before that, it fell to about 7% to a low value of ¥2517.74. The turbulent day has remained in a position of gradual decline since the month of July.
It has shown the recent blow to the bitcoin’s price. The optimism was that the proposed regulations of bitcoin in New York are going to usher into a new area of legality for the businesses of bitcoins. This sentiment has shown a reversal and has made all the concern about industrial mining and adoption and the impact of this reversal effect on the overall market. Raffael Danielli, a blogger of quantitative analysis at Matlab Trading says that the main reason behind the decline in prices lie in the pragmatic and protective exercises of traders in the market.
She said that the decline was actually a technical move. Most of the traders had an exit point with a lower bound of around $450 and they went out. This explanation is just like many other explanations that came out on the decline in the trading. The decline in the price of bitcoins added fuel to the already on-fire debate over the fact that the adoption of bitcoins by merchants has made its demand to weaken in the market of bitcoins. Charlie Shrem, a business consultant at Payza asserts that as major part of the selling takes place outside the exchange or OTCs, where prices of exchange are utilized as guides; therefore, the trading creates a little effect on the books of major order and listing prices too.
Tim Swanson, the author of a book called The Anatomy of Money-Like Informational Commodity, provided an alternative view. He said that no one actually wants to lose money and it does not really matter how many customers are purchasing off market or buying off-chain. He further suggested that the traders of OTC might be the reason behind weakening the pressure of buying; however, there are many other factors that must not be discounted too. He said that the currency of bitcoin is very much acceptable when any customer is willing to buy it. According to the views of Danielli, the adoption of merchants towards bitcoins might have an effect on the bitcoin market and its declining trend. There are variant other factors which might be affecting the declining trend of bitcoin market and they need to be brought in to highlight too.