Bitcoin price to fall to $1,200 by the end of the week
Bitcoin is heading down the slippery slope of a crash, but one big market leader is still holding firm: Argentina.
San Francisco-based bitcoin exchange CoinMarketCap has posted a graph showing the price of the digital currency sliding as a result of a sudden rise in the price and trading volume.
The graph shows the price falling from $1.20 per coin on Sunday to $800 on Wednesday, and then to $600 on Thursday, as the number of bitcoins traded and their value continue to climb.
This week has seen a huge surge in trading volume as traders rush to capitalize on a potential supply shortage, a supply surge and a possible surge in demand.
This is the first sign that bitcoin could be heading toward a correction.
“There’s a real possibility that we could see a correction as a consequence of a new supply shortage in the coming weeks,” said CoinMarketcap analyst Ryan Gallagher.
A price crash has been a major risk for bitcoin, with some analysts pointing to concerns over supply shortages, a new shortage in bitcoin and a surge in price.
The price of bitcoin has fallen more than 90% since the beginning of this year, falling to an all-time low of $6,100 on Thursday.
“The only reason the bitcoin price is rising so much is because it’s being held up by people who want to buy it in order to cash in their savings,” Gallagher said.
“But it’s still a very speculative asset and that’s not something that will change anytime soon.”
Gallagher said the price will continue to drop, but that it won’t necessarily go anywhere near the $6 billion mark.
“I think the more we see people getting involved in bitcoin, the more they are going to feel the pinch,” he said.
The currency has a lot of room for improvement, and the number one threat is that the price could drop by as much as 30%.
“A correction of that magnitude, if that happens, could result in the market price falling by up to 50% in a short period of time,” Gallagher added.
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The cryptocurrency has already seen a major price drop, from a peak of $2,100 to a low of around $700 a coin on Wednesday.