Bitcoin reached another milestone today, with the cryptocurrency testing the $400 per-coin mark. Bitcoin sold for over $1,100 inside of the last 52 weeks.
The price correction was driven by news from China, as it often has been. Fresh rumors of a government crackdown on the currency in the country, which could blunt demand and adoption, and therefore impair its value, sent the price of bitcoin down a quick 10 percent. It has since continued to slip.
According to the Winkdex, the average price of bitcoin is currently around $395, down from a 52-week high of roughly $1,132. BTC/USD on BitStamp has fallen from $1,150 in december to a current trading price of $393.
Indeed, with falling volume and falling prices, bitcoin’s vital signs are not as strong as they once were.
Bitcoin Vox Analysts
Bitcoin Vox Analysts do believe the PBOC new ruling has been known since 10 days already, but as there were previous “false” or “denied” rumors ; the situation was still uncertain.
From the moment commercial banks notify Exchanges that they must close their banking accounts, there is no more space for doubt.
However, Bitcoin Price may have hit a lowest around $400, as the Exchanges Market may adapt very soon. So far, close jurisdictions are well more flexible and liberal for Exchanges to operate (Singapore, HK). Either Chinese Exchanges move overseas either Close Operators will trust the (partially reduced) market share.
Bitcoin Vox Analysts upgrade their recommendation to NEUTRAL at current trading price (<$400), as soon as you are NOT on a day-trading perspective. Force is to admit, that for a mid-term (2-5 years) investment BTC under $400 is an attractive price.
Our Chief Editor said “Bitcoin is not a bubble, but a full Bottle of Champagne, with unlimited bubble in it ; because at the end of the day, Bitcoin creates value and reduces substantially financial expenses (200 bn for the global economy according to Goldman Sachs) for companies, among other added-value. That can not be ignored on a mid-term strategy”.