The bitcoin price has dropped around $30 since our last report. Following the announcement that President-elect Donald Trump would be moving to the White House this coming January, a large rally caused stocks and bitcoin alike to rocket higher than anyone expected. But now it seems the digital currency is lagging behind. Things got particularly scary when the price fell below $700, only to stabilizate at the $704 mark at press time.
Also read: Bitcoin Price Watch: President Trump Starts Field Day for Traders
A few days ago, one source reported:
“So there we go. Another week pretty much complete, and it’s been a big one for many reasons. Trump is heading to the White House, the bitcoin price has made a series of fresh highs, and sentiment seems to be up. We’re expecting this sentiment to maintain throughout the weekend and into next week, so 800 is looking more like a possibility. Yes, we’ve got $80 or so to go before we crack this level, but we’ve seen bigger moves over a couple of days, and we’re going to be optimistic.”
Only now, it appears that bitcoin is proving its volatility once again. Now that Trump is heading to the Oval Office, it seems that bitcoin is winding back down.
It’s possible the jump was merely a result of election hoopla. To call the sudden price hike a fluke is probably a bit much. After all, bitcoin has proven itself quite strongly over the past month-and-a-half, and while the price may have fallen, it’s still managing to stay over $700.
At the same time, we’ve seen this behavior exhibited from bitcoin in the past. Something good happens, it goes up then seems to settle down. Something bad happens, it plunges, only to eventually climb back towards the middle ground (though this can take a while) and lay itself out on an average scale. These things happen.
Bitcoin Price Activity Exhibiting ‘Safe Haven’ Behavior
But here’s what’s exciting. Following Trump’s rise to power, bitcoin was one of only two financial assets to shoot upward, according to Fortune.com. The other was gold, which has often been touted as the reason all other money exists.
Gold has proven itself to remain stable during even the most tumultuous of times. In fact, between 2008 and 2011 at the height of the Great Recession, gold prices increased dramatically, sometimes hitting increases of around 32 percent.
The fact that bitcoin could replicate gold’s behavior while other currencies fell flat or subsequently dropped is possible evidence of bitcoin’s growing stability. Granted bitcoin can keep this up, it probably won’t be long before the entire world finally looks at bitcoin for what it truly is – valid and irrefutable money.
Will bitcoin continue to rise up? Post your thoughts below.
Images courtesy of Bitcoinist, CalvinAyre.com.