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Cost of bitcoin continues to fluctuate

Cost of bitcoin continues to fluctuate

The cost of the first crypto currency continues to periodically take off and fall. On May, the rate rose to a maximum of $ 2.7 thousand with a weighted average of $ 2760.10 on Bitstamp. The reason for such a fluctuation is considered an uptick in demand out of Asia.

Cost of bitcoin

And after this on Monday 29, it fell sharply to $ 2,369. On some crypto-exchanges, the rate was even lower – at Bitstamp the bitcoin was trading for $ 2,263, which reveal a $500 drop since the recording price of the previous week. Just in four days, bitcoin lost nearly 19% of its value.

Experts explain this sudden correction as the reason of the cost fall that has influenced other digital currencies like Monero, Dash, Litecoin, Ripple and Ethereum.

“The correction was actually quite brief, and the prices today are still higher than that of a week ago”, BTCC CEO Bobby Lee told CNBC.

Nothing to worry about

What were the reasons for such a rapid fluctuations of the cost? Huge profit, as the analysts explain.

“I think the pullback was just a profit taking, a correction from the skyrocketing prices of last week”, Lee said.

Along with an unstable course, experts note a general decline in the total capitalization of the Crypto-currency. At the moment, it is about $ 83 billion, although it previously exceeded $ 91 billion.

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“[Traders] took this opportunity to capitalise on the excessive hype that’s been building up over the past few days in the space”, Petar Zivkovski, COO of cryptocurrency trading platform Whaleclub, told CoinDesk.

The cost fluctuations are an ordinary phenomenon, this is even ‘healthy’ for the currency as its price rises higher and higher. Furthermore, this is not the first case of such a rapid jump. Over 3 years ago, the digital currency has already marched from $130 to more than $1,100 and then fall to about $400 just in a week. After this, a constant decrease followed up to January 2015, when bitcoin began to rise rapidly again.

This appears to be ‘the 3rd wave’, but analysts are sure that we can expect further rallies and declines until the blockchain technology gets its absolute power.

“Bitcoin had moved too far too fast. This is a healthy, call it a ‘correction,’ coming on the heels of a very strong move”, Tim Enneking, chairman of Crypto Asset Management, told the bitcoin news outlet.

The cost of the bitcoin course is now trading in the $ 2450 range – slightly higher after a sharp decline, but far below record levels.

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