Bitcoin price further slipped below $8000 as reported on Thursday. This is the first time in three months that Bitcoin has fallen below this level though it is still double the level of what it was at the starting of 2019.
What do these volatile movements indicate? Is it a signal for the investors to lose their interest or it is just an illusion? David Nage, the principal money manager of Arca Funds in Los Angeles discussed the drop and the high volatility of this currency.
He said that where there is a high volatility, there is a high potential to buy that asset. As equities like Netflix and Amazon, it is also similar to them. According to classical economics, if the supplies are reduced and demands continue to rise then automatically the price also rises.
Bitcoin Halving Could Act as a Catalyst
Bitcoin Halving is referred to as a periodic reduction in the rewards for miners which is expected to have around May 15, 2020. This halving is also expected to come a lot before as both the technical and fundamental views point to the uncertainty of Bitcoin.