Although Bitcoin continuously tries to shed its turbulent reputation, the cryptocurrency platform watched their 17-month high drop by $3,000 in just twenty-four hours.
In 2017, Bitcoin reached its all-time high of about $20,000. However, has been unable to come close to this number over the past two years. Although Bitcoin has increased by 200% in 2019, its reputation has been anything but steady.
In late June, the cryptocurrency platform reached its 17-month high of $13,485.85, but by the next afternoon, the value dropped to $10,823.
This rapid decrease in value came at the same time as one of Bitcoin’s top competitors, Coinbase, experienced a significant outage on their platform.
Since Bitcoin’s abrupt losses, two cryptocurrency experts have weighed in on the discussion, stating that leverage has everything to do with the industry’s volatile reputation. CEO of Genesis Global Trading, Michael Moro, explained how borrowing money to make a trade affects the market. “The presence of leverage exacerbates the moves in both directions and affects the speed dramatically,”. He added, “Of course bitcoin has a history of doing this (both upward and downward), but it’s hard to call the magnitude of the move healthy.”.
Although Bitcoin has been around for nearly ten years, the platform’s high transaction costs and constantly shifting values, have prevented it from replacing traditional payment methods.
However, with Facebook’s announcement of its own cryptocurrency platform, Libra, the market has become more trusting of the industry in general, as shown by Bitcoin’s 30% increase since that time.
CNBC’s Squawk Box also confirmed this theory, stating, “One of the largest companies in the world said we believe in cryptocurrencies,” and “If you’re an institutional investor who’s getting close and still worried about investing, it makes you that much more confident.”.
While it may be difficult for Bitcoin to reach its 2017 high of nearly $20,000, cryptocurrency experts believe that the platform will likely maintain a value of between $10,000 to $14,000.
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