The rate of the most common cryptocurrency fell below $ 30,000 per coin on Friday night. Bitcoin weakened by about 17 percent in 24 hours. What may have frightened many newcomers to the cryptocurrency world was seen by more experienced investors as a shopping opportunity. Shortly after falling below $ 30 thousand announced American company MicroStrategy, which specializes in business analytics, took advantage of the situation.
She bought another 314 coins in her already relatively decent stock of bitcoins. Previously, it had over 70,000 in its reserves. And bitcoin, meanwhile, has gone back above the psychological threshold, which is half the 20-year high.
A similar pattern is repeated for the cryptocurrency rate from the beginning of the year. In previous weeks, the price of bitcoin was shaken by even more dramatic declines – once by twenty, the second time by 27 percent in one trading day. This was always followed by a significant price increase of tens of percent, the Cointelegraph server recalls.
This means that long-term bitcoin holders remain calm, or similarly, MicroStrategy will immediately buy Michael Saylor immediately.
–
–
They are instructed that even during a long period of growth, bitcoins do not avoid declines of more than twenty percent per day, as shown, for example, by 2017, during which the cryptocurrency rate climbed twenty times.
On the other hand, current bitcoin fluctuations show a paradox that critics cryptocurrency. Saylor et al. they buy virtual coins as a defense against the threat of inflation and perceive bitcoin as a digital equivalent of gold or a possible island of stability in an early time.
–
–
Just because there will never be more than 21 million bitcoins as states try to boost the paralyzed economy by massively pumping money by fighting coronavirus. But the unceasing volatility of bitcoin fundamentally breaks down the narrative of the “safe harbor”, according to skeptics.
Another look adds Bloomberg analyst Mike McGlone with a chart of the long-term rising average annual price of bitcoin – despite the massive fluctuations, the trend is said to be clear. There is simply a lot to interpret what is happening around bitcoin. But so far, Saylor and other big fans of the cryptocurrency have been voting on their own wallets rather than debating.
–
–
