Back in December, 2015 we first mentioned that the mining reward was going to be halved in 2016 and the time has finally arrived. After much speculation when this event would take place and how it would affect the Bitcoin, on Saturday, 9th of July, the supply of the world’s most popular cryptocurrency has been officially halved. As it’s explained in the article, halving happens every four years and it helps controlling the number of coins released on the market.
Usually, when such a thing happens, the value of existing coins grows, resulting with price improvements. However, this time we didn’t witness a price jump; quite on the contrary, the Bitcoin has been declining for some time now and the trend didn’t seem to change in the past two days either. Even the signal by the technical indicators is suggesting that the value per coin would more likely fall rather than grow; hence, everyone’s a bit surprised by the current situation.
Volume Drastically Dropped; Overall 24-Hour Price Change 0.21%
The current trading price of the Bitcoin is $648.49, which puts the overall price change in the past 24 hours at 0.21%. Nonetheless, even though the overall change for now is positive, generally speaking the Bitcoin isn’t doing too well. The day’s low is $636.82, while the highest price per value noted in the past 24 hours was $654.20. Seven days ago the price was around $670, thus it can be concluded that there’s been a downwards trend in the past few days.
However, aside from the chart that reveals pretty disappointing numbers, another segment that should be worrying is the 24-hour volume. Namely, its current value is $93,139,300, meaning it drastically dropped in comparison to three days ago. Hence, it’s unrealistic to expect the price of the Bitcoin improve in near future. At least the market cap managed to stay over the $10 billion threshold.
Cherry on top is the signal from the technical indicators and the moving averages, which is strong sell. Unlike all 12 averages that are pro-sell, among the indicators there is a single pro-buy and two neutral ones. However, the majority (eight) is suggesting the price per coin is going to fall.
This signal, alongside the declined volume, is a strong reason to believe the price not only won’t grow, but it would probably decrease. On the other hand, the Bitcoin always knows how to surprise us, so the hope to see it grow out of nowhere shouldn’t be excluded either.
Pound more Unstable than Bitcoin
We’ve already mentioned that on 5th of July the Bitcoin briefly became less volatile than the British pound. Obviously, the responsibility for this lies in the infamous Brexit vote that shattered the British national currency alongside the country’s economy and brought on a lot of uncertainty in people’s lives.
Well, according to the Independent, another effect the Brexit vote had on the pound was making it more unstable than the cryptocurrency. The article carefully explains how both currencies behaved in two very different ways during and after the vote, plus points out that the trading volume of the Bitcoin from UK citizens has doubled ever since.
Finally, we would like to conclude today’s post with a very interesting article published by the Huffington Post, which focuses on the Bitcoin versus the Ethereum. The text reasonably points out that just like technology evolved we can see the evolution of cryptocurrencies in the Ethereum, but it also highlights that the Bitcoin is still far ahead from its competitors nonetheless.