The Bitcoin price has plummeted by more than $60 or 12.5% this week. Just yesterday the Bitcoin price went from 450 USD per bitcoin to $407. The price has not been this low since April 2014, after a long decline from the massive spike during the Chinese fall where one bitcoin was worth almost 1200 USD. View the chart below, the intersection shows April 8th to 10th 2014.
As Ian Worrall from Sembro Development told us:
The Alibaba IPO has generated a lot of noise in the financial markets as the IPO date has drawn closer… The largest Bitcoin exchange by volume, BTC China, which covers an average of 38% of the total Bitcoin transactions has averaged around 19,000 Bitcoin per day in trades. …the volume is currently up over 52% at 29,400 Bitcoin and rising.
He then continues to say:
On top of increased volume on Chinese exchanges, the volume on the European exchange platform Bitstamp is up well over 100% today at around 21,400 Bitcoin compared to the monthly average of 9,200 Bitcoin. This is right after many of the leading German analysts from renowned investment banks have indicated that Alibaba is a strong buy… Based on this information, we have concluded that many large Bitcoin investors from China and Europe have exited their positions in Bitcoin to put into the Alibaba IPO.
So what will happen with the Bitcoin price now? Did Bitcoin just lose some of its biggest investors (Chinese as well as Americans)? The price of one bitcoin is record low, and other investors might see this as a great opportunity to get a stronger grip on the Bitcoin market. My guess is that it will soon rebound, big time.
Alibaba Group is known as a giant Chinese e-commerce company that owns everything from Alibaba.com, ShopRunner and Lyft. It was started by the former English teacher Jack Ma in 1999. Alibaba started as an online marketplace for businesses but quickly expanded to different segments and services, like consumer products and payments.
Disclosure: Both CCN and I operate with Bitcoin and have interest in bitcoins. CCN nor I can be held responsible for actions you take, trade at your own risk. Images from Shutterstock and Bitcoinwisdom.
Last modified: October 31, 2019 06:36 UTC