So in the last two days, Bitcoin has attempted to try and breach the 40K mark. And it did, but unfortunately was not able to sustain it.
Bitcoin along with other crypto currencies has been struggling the last couple of weeks. A standard brought about to challenge the fundamentals of the existing Government promoted banking systems is facing the scrutiny of these same Governments.
The Chinese have been tightening the screws on mining, buying and trading crypto currency and that led to major concerns for the not so old financial instrument. Retailer investors are getting scared and closing their positions to avoid going down to Zero.
Interestingly, the volume of bitcoin or other currencies traded is high but the number of wallets trading them is not as high, compared to the number of wallets holding cryptos. What this means is, not a lot of people are trading or closing their positions and panic can be created easily and due to a relatively lower adoption base can result in sharp drops.
If you’re invested or thinking of invest – Must think again.
P.S: if Bitcoin is able to sustain above 40K, 41 or 42K may be touched soon. Just a hunch.