Bitcoin Price Fluctuations Hit a Fever Pitch Yesterday. Here’s what probably happened.
As December 6th came to a close we reported “Bitcoin Gains $2,000 in 24 hours” settling in at just over $14,000. I stopped checking on Bitcoin price fluctuations shortly after BTC passed the $14,200 mark. I woke up on December 7th to Bitcoin at $16,000 – another $2,000 gain in just about 12 hours. I was stunned. It woke me up faster than morning coffee. Then Bitcoin went up ANOTHER $1600 in about 15 minutes. $17,600 overnight. I didn’t know what to think.
Then Bitcoin price fluctuations took the bitcoin price so high anybody watching got a nosebleed — Bitcoin hit $19,000! And then it plummeted. That all time high was gone in 60 seconds. Bitcoin pricing went into free fall losing $3,000 in value in a matter of minutes. The price went up and down like an unsure elevator the whole day. I was watching the price moves all day long to the point it was hard for me to concentrate on anything else. When the clock turned 12 and December 7th became December 8th Bitcoin was still well north of $16,000 – a tidy gain at the end of the day.
Bitcoin price fluctuations didn’t stop there. As I write this at 5:30 AM PST Bitcoin dipped below $15,000 to $14,800 then came back to $15,225 in a span of five minutes.
I think this latest mess of Bitcoin price fluctuations started when Bitcoin hit $19,000. I think the emotional alarm bells in a lot of investors went off forcing fearful investors to sell right then and there and take profits. Then more aggressive (and some might say insightful) investors who saw the opportunity in buying Bitcoin on a dip swooped in causing new demand — and the next price spike.
In my opinion, anyone thinking Bitcoin is crashing or there is a Bitcoin bubble is very short-sighted.
According to this quote found in a CNBC article entitled “Bitcoin Price Wild Price Swing After New Record” , this sentiment prevails:
“It goes without saying that prices have reached a level where sentiment is exhibiting short-term euphoria,” Mark Newton, managing member at Newton Advisors, wrote in an earlier note to clients. “But to think prices are at mania levels where this could suffer a serious crash here… is a bit ridiculous.”
I concur; Bitcoin prices are going to continue to go up and up and up day over day. As I publish this article Bitcoin is now at $15,550. See?