Bitcoin Still Below $8,000 as Market Gains $10 Billion
With the market rather stagnant for the past week, many experts expected the price of bitcoin to drop back below its current level of $7,720, at the time of writing, to the $6,000 range. Some are suggesting that this could be a sign that the price will continue to decline until it bottoms out at $5,000 where it is believed the bottom support level is.
The stagnation of the price of bitcoin has not had a huge effect on the market overall with the recent gains being made by other altcoins. EOS has been the best performing coin in the last 24-hour period, rising 16 percent in that time and surpassing Litecoin on the list of market capitalization. This was due to the launch of their EOS main net which has been greatly anticipated and will likely continue to carry the EOS price to unprecedented levels.
The main issue right now is one of volume. Bitcoin has been experiencing a lack of trading volume compared to the end of last year when the trade volume was so high it started to make the transaction costs increase to uncomfortable levels because the network couldn’t handle that large a number of trades at once, creating a backlog and delaying the verification of blocks.
That spike in volume changed, however, when the bottom was pulled out from under all of the newcomers to the market as many people shorted bitcoin contracts and sold their coins while it was topping out around $20,000. This has caused people to return to the market slowly, hesitant to re-enter the market after they experienced what many inaccurately described as a bubble bursting.
Now, with more attention moving back to other altcoins and their own advancements for the cryptocurrency market, bitcoin’s stagnation has made even more people shift their funds to coins that are at the very lease appreciating on an upward trend. Bitcoin Cash has actually been performing steadily for this past week, breaking through $1,100 at the time of writing and stealing the thunder from its big brother bitcoin.