Earlier today, on December 22, the bitcoin price fell by more than 22 percent from $17,000 to $13,300. Analysts have attributed the fall to the rapid surge in the price of bitcoin over the past month.
Since November 22, within the past 30 days, the price of bitcoin increased by over 91 percent even with the price of bitcoin at $15,900. The price of bitcoin on November 22 was $8,000 and even with the consideration of the latest price correction to $13,300, the price of bitcoin is still up by 60 percent on a monthly basis.
Still, in the short-term, cryptocurrency analysts including Crypto Rand encouraged investors to be cautious about bitcoin’s price trend because of the lack of volume. CryptoRand emphasized that as of current, traders are not buying the dip.
ShapeShift CEO Erik Voorhees also noted that the transaction fees of bitcoin have surged to a point in which bitcoin fees have started to cost more than bank wires. Voorhees wrote:
“Fellow Bitcoiners, are you ever going to realize how problematic these fees are getting? Average fees now over $40 per transaction. A year ago avg fee was $4. A year prior, $0.40. Growing faster than price, and exponentially with usage. We just spent $4800 to move 15 BTC in one transaction.”
The failure to address the rapid increase in transaction fees could result in bitcoin losing its dominance over the cryptocurrency market to other digital currencies with lower fees and better scalability, several analysts have explained.
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Last modified: May 20, 2020 9:15 PM UTC