Cryptocurrency
Cryptocurrency
Volatility returns, as Bitcoin struggles to defend $8,000 level
Bitcoin (BTC) saw some rocky trading yesterday, experiencing big price swings throughout the session. Having opened the session at $7,807.88, the digital coin rallied during the morning portion of the session and easily reclaimed the $8,000 level. BTC rose to as high as $8,268.71, hitting its highest price level since 29 July, according to data from digital currency tracker Coinmarketcap. However, the rest of the session was marked by high price volatility, as the coin proved unable to secure a stable position above the $8,000 mark. BTC even plunged into the negative territory in late trading, with its price falling to an intraday low of $7,696.39. Bitcoin eventually finished the session at $7,994.42.
So far in today’s session, BTC has followed a similar pattern. The coin was able to easily retake the $8,000 level, but its momentum waned upon approaching the $8,100 mark. After several hours of trading just above $8,000, BTC has once again pulled back to sub-$8,000 levels and is currently hovering around the $7,930 mark.
Is ‘crypto winter’ ending?
Following a week of massive gains, Bitcoin now appears to be facing a consolidation period that would likely determine whether the cryptocurrency could continue its run. However, it looks like investors are returning to the market with renewed confidence, following encouraging reports regarding Fidelity Investments’, Facebook’s and Bakkt’s crypto-related projects. Additionally, Bitcoin’s offensive at the $8,000 mark happens during Consensus, an annual two-day crypto conference that brings together some of the biggest names in the industry.
“It’s the largest crypto conference,” Tom Lee, head of research at Fundstrat Global Advisors, told CNBC on Tuesday. “I think that, really, this year is bringing the crypto industry together, but in a much more higher-quality form because you don’t have as many sort of scams and ICOs out there.”
According to Lee, if the conference goes well, it will be the latest sign that the “crypto winter” is ending.
In today’s trading, the Bitcoin price stood at $7,933.20, as of 10:10 BST. The digital coin has lost 2.3% of its value in the past 24 hours. Its total market capitalisation currently stands at $140.4 billion, which represents 58% of the combined value of all digital currencies.
Featured image: Wit Olszewski / Shutterstock.com
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