E.It happened as it had to: After the Bitcoin crypto indictment failed to surpass the record high of 2017 on Wednesday, the price in important Asian trading fell by more than $ 1,000 on Thursday night. The oldest and most important cyber system is currently trading at around $ 17,850. On Wednesday, it hit a three-year high of $ 19,510, only around 2.5 percent from its record high. In view of the very high trading volumes on the stock exchanges, it is not surprising that such a rapid correction will come after the rebound from the all-time high, said Justin d’Anethan of the Diginex consulting firm.
The course had previously been driven by expectations that the purchase option via payment applications such as Cash and Paypal would lead to a bottleneck as well as greater use as a means of payment and, last but not least, a strategic forecast by the JP Morgan bank, which sees Bitcoin as a gold replacement for younger people.
Skeptics, on the other hand, saw primarily emotional factors at work. FOMO, the fear of missing out, was mentioned. Others even predicted an imminent sell-off because that is always the case when media attention increases.
Whether the skeptics are right or whether it is just a possible correction has not yet been determined. But Bitcoin trading appears like the stock exchange in a magnifying glass. Steep climbs are followed by clear drops in course, only at an even greater speed. On the one hand, this is probably due to the fact that the number of actors and the volume moved are comparatively small. So small movements have bigger effects.
On the other hand, there are no or only very insignificant fundamental factors for Bitcoin, because the crypto investment, which is often referred to as currency, is not a currency, because it lacks universality as a means of payment and, in view of the enormous price fluctuations, it does not have a real store of value. As a result, it lacks substance. It is driven by speculation about capital gains or losses, i.e. ultimately an extreme oscillation between intrinsic value and lack of value. This inevitably makes the price volatile as long as it is not decided.