Why has Bitcoin stopped growing in price?
The world's most widely traded cryptocurrency, Bitcoin has seemed to simply stop growing over the last 2 months, why has this happened? Let's talk about that...
First of all, we should find out what the current price of Bitcoin is - As of 19th July 2020, Bitcoin is trading at around $9150 USD. Since the turn of the year, Bitcoin has just edged past the $10,000 USD mark, fallen off a cliff to almost half of that, and then quickly recovered.
The most shocking assumption as to why Bitcoin is no longer increasing is because it is no longer volatile. Volatility is a measure of how quickly something can move either way, and with Bitcoin, the trading volume of the currency has really fallen down since its halving back on the 11th May. The most likely cause of a trading volume drop like this is due to the summer season in the northern hemisphere. Day trading in particular is less frequent during the hotter months of the year in the north.
The Bitcoin halving was pretty short lived, and it didn't really meet the expectations some investors had of it jumping to $20,000 USD or even $50,000 USD. More volume has been added to NASDAQ and FTSE stocks, which have been heavily driven by vaccine news and coronavirus case counts. This is something that Bitcoin can't directly move from, but it did cause the initial drop mainly due to people panic selling basically every stock they had (Besides the technology stocks which fared pretty well through the months of March and April).
Bitcoin will probably begin to rise come the end of the year, but it has come under increasing pressure from other cryptocurrencies that are much more integrated with online asset and security systems, such as Ethereum (ETH), Doge-coin, NEO and Ripple (XRP).
The main fear for Bitcoin is the risk of another failed attempt to get past the $10,000 USD support level - In the past 10 months alone, it has attempted and failed to hold above this price level 3 times.
Some analysts however, are now saying that going into August, Bitcoin could finally edge back to the $10,000 USD mark, as the number of bullish traders begin to outweigh the bears. This support should come in line with increasing consumer confidence, as well as the increasing likelihood that a vaccine is on the cards for the end of this year.