Tuesday, Bloody Tuesday – BitCoin Value Drops 17% in a Day
by David J
After a period of stability, the sharpest drop in value since the beginning of 2018
After months of prosperity and stability, with a constant rise in value, Tuesday September 24th, gave us different news. For the first time in months, we have witnessed a sharp double digit drop daily drop in the price of Bitcoin. The hard day ended up much harder than feared, with price dropping down by as much as 17% within a single day, the biggest daily drop recorded since January 2018. Furthermore, the drop of value meant that at the end of the trading day, Bitcoin prices dropped lower than $9000, marking its lowest pricing point since June 2019.
While the
reasons behind the drop remain somewhat unclear, many experts suggest it is
closely related to the lukewarm release of the ‘one-day Bitcoin deliverable
futures’ which was launched in the Bakkt online trading platform. The new
offering, was supposed to open up new paths for investment for crypto
enthusiasts, but failed to garner any excitement, and the first day concluded
with approximately 100 being sold.
Investors, responding to the poor performance, reacted accordingly, further
fueling the drops in prices as a substantial amount of bitcoins flooded the
market.
While this can be seen as a worrying sign, many experts do not seem phased by the difficult trading day. Unlike earlier years, when bitcoin prices fluctuated regularly, causing growing concerns among investors and regulators alike, 2019 has been a very good year for bitcoin, remaining stable, expanding into new territories and becoming a widely acceptable currency in various places from retail stores in Venezuela to promotions by international restaurant chains. It has become a growing part in the daily lives of many and the direction will not be changed by patches of instability.
This does call, however, for an examination of possible ways to limit the instability in the bitcoin value in the long run. Many actions and regulations were offered by various economic experts worldwide – as will be elaborated on in an upcoming piece – and this day of value drops, can be definitely seen as a call for action.
