Bitcoin has plunged more than 30 per cent since hitting a year-to-date high. That fact is clear, but explaining why the world’s largest digital currency has lost momentum in the second half of the year is anything but!!
According to their latest findings, Bitcoin’s price moves are being driven by competing digital currencies and new blockchain technologies. Indexica’s study showed talk around Mastercard’s partnership with R3 to develop a new blockchain payment system as a strong driver of recent returns.
Bitcoin’s sensitivity to the development of competitors is just another sign of a coming of age. In a new development, Indexica found that Bitcoin’s strongest predictive measure was its “quoteability,” which showed that it was most often talked about in conjunction with more traditional currencies.
“Now that Bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move,” said Selbert. “Bitcoin is part of the financial landscape in a very intertwined and mature way.”
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