Bitcoin crashed to $6,700. Beginning of the End?
Just yesterday, another decline in the price of Bitcoin began. In less than a day, the first cryptocurrency collapsed by as much as $300 apiece. What is the reason for the decline in value and what to expect from the largest coin? Let’s get it right.
What exactly happened?
Coindesk website on December 16 at 17:14 recorded a drop in the value of the first digital currency. In just a few hours, cryptocurrency lost $60 in value. And then, as if by magic, the cryptocurrency began to fly rapidly to the $6849 mark. The fall was replaced by a very small increase and a further decrease in the price tag. And now, at the time of writing this material, the cost of the first coin is only $6,711. As you can see, falling from $7,123 is really unpleasant.
Discussion of the reasons for the Bitcoin price drop
In fact, there is nothing strange in the collapse of value. Many market participants and major analysts see the reason for the implementation of PlusToken tokens. The platform put too much currency on the exchanges, the value instantly fell and the price began to decline. Frightened cryptocurrency owners hastened to realize part of their savings in order to fix at least some profit. All this led to the collapse of the market. A common occurrence, which, most likely, does not have serious consequences. Experts say that chart analysis predicts a drop to a maximum of $6500 per 1 BTC, but no less.
What happens with mining of the BTC?
Much more important is the reaction of miners to the behavior of Bitcoin. For 27 days, the coin network has been losing computing power. Owners of equipment working on processing Bitcoin transfers leave the industry or turn their attention to other cryptocurrencies. This is truly a global issue. The outflow of miners can lead to a slowdown in the development and degradation of the first cryptocurrency. Transactions will go on longer, coins will start to get cheaper.
Some skeptics are sure that Bitcoin is gradually dying. In their opinion, this decline is not the last and only begins difficult times for BTC. It is difficult to make unambiguous forecasts regarding the fate of Bitcoin. But we want to hope for the best. It is likely that BTC will increase in price, and miners will want to return to cryptocurrency mining.
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