Since the news that China would be closing down Bitcoin exchanges broke last week, Bitcoin dropped to a recent low of $2900 before bouncing back strongly. The strong performance of Bitcoin saw it hit the $4000 mark again this week and had since held steady.
However in the last few hours, the price of Bitcoin and other cryptocurrencies has once again begun to drop. At the time of writing, Bitcoin has fallen to $3700 a coin. The question is, how low will Bitcoin go this time?
No major announcements have been made that could be directly contributed to the price taking a tumble however there have been rumours circulating that China could be about to ban OTC trading of Bitcoin. It's been thought that a lack of demand in purchasing Bitcoin could be behind the falling prices. Not only that, but the market stood rather well during the China crisis with the apocalypse many had expected not materialising.
Personally, I feel that over the weekend we may see Bitcoin drop to as low as $3500 but I don't feel that it will drop as far as it did last week when it went below $3000. Once Bitcoin does drop another hundred or two hundred dollars, I think it will stabilise somewhat and we may see some small growth towards the end of the month, possibly getting close to $4000 again.
The big question will be what will happen when China finally closes the doors on the exchanges. Has the mass sell off already happened or is yet to materialise? I do think we will see another drop in prices around the end of September but I am confident that before too long the market will recover again.
How low do you think Bitcoin will go during this latest dip?
(These are just my personal opinions)
