Bitcoin saw high volatility and turmoil earlier this week, after a rapid decline of more than $ 3,000, the price of Bitcoin rebounded from $ 16,800 recorded yesterday to $ 17760 at the time of writing this article.
In recent days, it was expected that the Bitcoin currency would break its highest level ever, but instead it fell and fell to 16,800 dollars, and this is due to several reasons, which we discussed in an article entitled:
Six possible reasons behind the nearly $ 3,000 Bitcoin price collapse
Bitcoin analysts explain why Bitcoin's price has risen:
Jason Dean, a Bitcoin analyst at Quantum Economics, said about the recent Bitcoin movement:
The height at all is a great psychological barrier, breaking it requires real momentum.
What is good for Bitcoin tends to be good also for alternative digital currencies, as the price of the ripple has crossed $ 0.60 at the moment, and the price of the stellar coin rose earlier this week, as the price rose almost 100% over the past days.
On November 23, Ripple crossed the $ 0.50 price for the first time since 2018.
As for the reason for the bitcoin price rise, Eric Wall, chief investment officer at crypto investment firm Arcane Assets, says:
It is so common that Bitcoin is struggling to surpass the previous record high, and try a pullback instead.
WAL attributes the recent rise in the bitcoin price to market psychology, rather than events such as withdrawals in the recent OKEx platform, or the expiration of about $ 1.3 billion in bitcoin options, and adds by stating:
Withdrawals on the OKex platform have been pent-up since the time they were suspended.
With regard to the expiration of Bitcoin options contracts, it is unusual for them to have sudden market effects or lasting effects, and if they conflict with broader sentiment they are always absorbed by the market.
Given that the bullish catalysts that pushed us this far are still largely there and still running, it is only a matter of time for the temporary selling pressure to subside and we continue our upside.
While Dmitry Ushakov, CEO of the Russian mining services company BitRiver, believes that the short-term rally may reflect the acceptance of Bitcoin at the institutional level, and told the source by saying:
Today's increase and the bitcoin price hike may be part of the further price hike.
More institutions are realizing cryptocurrencies as a reliable store of value and an exchange medium.
Analysts considered the sudden rise this year of large-scale investments from "MicroStrategy", a technology company that invested $ 425 million in bitcoin in August and September, and "Square" that provides a digital payment service founded by "Jack Dorsey", founder of Twitter, which has also invested 50 million. Dollars in bitcoin last October.
Since then, the bitcoin price has nearly doubled.
And it seems that the boom that these companies started is continuing.
In general, the price of Bitcoin in 2020 started at around $ 7,000, decreased to $ 4,000 in March, and has risen steadily again since then, with momentum increasing significantly over the past few weeks.
If the price continues like this, the drop this week is likely just a regular bitcoin wobble.