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Bitcoin’s extreme volatility can be summed up by looking at the price movement in the last 20 days. Bitcoin price reached its peak at $5000 on Sept 2, came crashing down to 2900, shot back up to $4100 in no time, and now rebounding again from a large pullback – at $3555 at the time of writing and market cap of $60 billion
Just like every other time, when Bitcoin goes down, it takes down every major cryptocurrency with it. The entire crypto market cap has come crashing down to $122 billion from $165 billion.
Volumes in China are drying up fast and it’s taking time for them to move to other markets like Japan and South Korea. This could be one of the reasons why we are seeing this sudden downward trend.
Another reason could be the upcoming potential Segwit2x fork which will once again split Bitcoin. On the other hand, dollar demand has picked up following the FOMC decision. The Fed also shared its plan to trim its balance sheet reinvestments by $10 million per month starting in October.
It’s also possible that escalating tensions between the US and North Korea could revive demand for Bitcoin.
Top Stories from the Crypto World
1. Jamie Dimon faces market abuse report, but he’s not taking his words back
Blockswater, an algorithmic liquidity provider, filed a report against Dimon for spreading false and misleading information about Bitcoin.
The firm claimed Dimon violated Article 12 of the European Union’s Market Abuse Regulation (MAR) by declaring that cryptocurrency bitcoin was “a fraud”.
How did Jamie respond to this? By going hard at Bitcoin once again.
He told CNBC, he is concerned about a flood of cryptocurrencies – thanks to bitcoin, ethereum and initial coin offerings (ICOs) – and believes governments will soon crackdown on the phenomenon. Dimon said:
“Right now these crypto things are kind of a novelty. People think they’re kind of neat. But the bigger they get, the more governments are going to close them down,”
2. “No truth to China banning mining or network”, says Charlie Lee
Charlie Lee, creator of Litecoin, took it to Twitter saying, “I have a trusted source that says that there’s no truth to China banning mining or network.”
In the past we’ve seen Charlie’s trusted source to be quite accurate with regards to China wanting to shut down Bitcoin exchanges.
3. Miners in China not happy about the potential Segwit2x fork
According to Samson Mow, Blockstream’s CSO and Pixelmatic’s CEO, many miners in China are angry about the upcoming potential Segwit2x split in November. They’re demanding refunds from bitmain on hardware pre-orders.
Another Bitcoin split is not a good news for Bitcoin or Bitcoin Cash for that matter. But if the proposal gets enough support from the miners, we may see another version of Bitcoin in November.