It’s a bittersweet day for Cryptocurrencies, as the price of Bitcoin tumbled to its lowest point in over a year, wiping out all of its gains and causing its value to plummet further.
The news of the drop in Bitcoin prices came as the Federal Reserve’s latest guidance has been released, revealing that the US economy has reached a ‘soft landing’ in its recovery from the Great Recession.
However, as with any major economic recovery, there are some who remain optimistic about the future of Bitcoin, and many have started trading Bitcoin in anticipation of a higher price.
According to CNBC’s Evan Glasner, the reason for the Bitcoin price slump is because the Fed’s latest economic outlook is not yet “tied to” the price fluctuations of other cryptocurrencies.
“It is possible that the Fed is going to be less optimistic about Bitcoin as its economic outlook will change in the near term,” Glasner told CNBC.
Despite Glasner’s prediction, Bitcoin has continued to climb, with the digital currency trading at a high of $2,000.
At the moment, it is worth around $10,000, and it is expected to rise further in the coming days.
The price of Bitcoins in general, however, remains volatile, and trading volume remains low, which means the amount of money involved in the Bitcoin trading industry is still very low.
As the value of Bitcoin is largely determined by the price it can be traded at, many traders will only use Bitcoin to trade other cryptocurrencies like Ether and Litecoin.
Ethereum, on the other hand, has gained over 40 percent this year, and its value has increased to over $60 billion.
In the long term, however a surge in interest in Bitcoin will see the digital cryptocurrency’s value soar, and people who have invested in Bitcoin may be looking for another way to make money.
One way people are taking advantage of Bitcoin’s rising value is by trading it on exchanges.
Cryptocurrencies are becoming more popular, and with this increasing interest in them, many are becoming savvy traders.
Cryptocurrency prices are a great indicator of the value and value of a particular digital asset, and these prices are often used as an indicator of how well a digital currency is performing.
With Bitcoin’s value fluctuating constantly, it can make for an entertaining trading experience, but there are still plenty of ways to profit from Bitcoin, such as by making trades on other cryptocurrencies or by using them to buy goods and services.