On Saturday, the most popular digital currency traded at $5,103.91, according to CoinDesk.
The brand new All-Time High helped to boost the entire cryptocurrency market cap, including Ethereum and the “younger brother” of Bitcoin, Bitcoin Cash. Last week, the market capitalization of digital currencies has reached $176 bln.
However, Bitcoin wasn’t able to stay above $5,000 for too long. The sell-off has started this weekend.
At press time, Bitcoin is 17% off its peak, at $4,237.43.
At the beginning of this year, one Bitcoin was worth less than $1,000. In July, some market experts were pessimistically expecting a plunge below that mark, as a possible outcome of the “civil war” over Bitcoin future.
However, the cryptocurrency seems to be doing just fine. Its value has seen a meteoric rise, boosted by the developers and miners, the people using computing hardware to approve Bitcoin transactions. Together they began implementing a plan to allow more transactions to be proceeded per minute.
In August, the Bitcoin world has experienced an event called “hard fork”. Blockchain, the underlying technology behind Bitcoin, was split in two independent chains. As soon as the community realized that hard fork didn’t cause a major disruption of the original cryptocurrency, the price started rising again.
Both events have been receiving plenty of media coverage, which, once again, has caused growing interest for cryptocurrency around the world.
Market experts believe that Bitcon will remain bullish, despite the current fallback.
“Price drops like this have already happened in the past, whenever Bitcoin value has hit a certain number. It is tied to people placing sell orders on Bitcoin exchange platforms. The purpose of such orders is to exchange a currency once it reaches a certain value”.
When placing an order, we are likely to pick a round number. It has something to do with human nature.
Even traditional investors find the risks of investing in cryptocurrency quite acceptable. They use it as one of the way to diversity their investment portfolio.
In addition, more and more companies in the marketplace provide the opportunity for non-professional investors to invest in cryptocurrency. In order to do that, you no longer need to understand the complex technologies behind Bitcoin and how to keep it safe.