Keeping Up with the Bitcoin

My, my! The bitcoin is one fickle cryptocurrency, isn’t it? If you need a lil’ help getting up to speed with its price action, here’s a quick recap of the events that influenced bitcoin prices lately.

As you can see from the chart below, bitcoin price action started picking up in October last year when BTC China announced its $5 million investment in the bitcoin market. Since then, traders and regulatory officials started buzzing about the cryptocurrency, with some highlighting its benefits and others remaining skeptical about its legitimacy.

Bitcoin Price Action

Bitcoin Price Action

Bitcoin prices surged in November 2013 when U.S. state agencies and the Senate confirmed the legitimacy of the currency, eventually pushing prices past the $1,100 barrier on several exchanges. However, the rally came to a halt when BTC China decided to close shop as government officials began cracking down bank accounts related to bitcoin operations. The reopening of BTC China in January this year triggered a strong bounce for bitcoin prices.

Another selloff ensued a few weeks back when Mt. Gox, the world’s largest bitcoin exchange, suspended trading due to a hacking allegation. It announced that it lost roughly 750,000 bitcoins and eventually filed for bankruptcy protection last Friday.

Despite this setback and Apple’s decision to ban Blockchain on the App Store, several brokers are still offering bitcoin trading on their platforms, as many believe that there is hope for the cryptocurrency. A quick look at the chart reveals that bitcoin lost around 50% of its value, but this isn’t so shocking given the currency’s volatile nature.

In addition, it appears that bitcoin updates from China have a strong tendency to move prices around. Bitcoin enthusiasts have noted that, once the panic-selling sparked by the Mt. Gox shutdown boils over, the currency can draw support from the fact that Chinese investors are taking advantage of the bargain bitcoin prices. In fact, bitcoin trading volume has quadrupled in the country, with approximately 30,000 bitcoins being actively traded since last week.

Do you think BTC will trade at the $1,000 levels again soon? Let us know by voting through the poll below!

  • nocomment

    It runs at somewhat below 500 euro for a single bitcoin …. despite everything, so that is what gives the oldskool dino’s the words ‘we have still hope’ ?

    sometimes you people …. you know, YOU people …. need to check on the support it gets instead of the price action, and i dont mean chart-support, i mean support from professionals and business all across the globe (except russia and thailand ofcourse, despite chinas denial to have banks handle it when china wakes the change in volume is still most visible)

    get someone from bitcoinmagazine or bitcoinnotbombs to write you the occasional article, they know what they’re talking about and they probably do if just for teh lulz and teh promotes as well, no offense but i have read aticles on bitcoin from here to the bluffington post and herald and back one too many times
    the fact its still that stable after all the bleh is just a sign of its potential and the will and drive of the people/majors behind it
    the price doesnt matter, the range does for traders, the price does not for people using it, the value itself only for longterm investors
    who need to take it on themselves to raise it, im sure they can whale just as much as the next incognito one pumping dumping like there was no fontass tomorrow

    • Relvas

      What have I just read?

      • Forex Ninja

        Ha! Had to re-read this one myself!

    • Forex Ninja

      I think that for now the news reports carry a lot of weight in determining price action (more than technicals) so it’s important to take note of these, particularly news from China or any announcements that impact its so-called credibility as a legitimate currency.

  • Satoshi Nakamoto

    So did they find the real Satoshi Nakamoto yet?

    • Forex Ninja

      What are you talking about, it ain’t you?! Lol.

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