Bitcoin price jumped $400 in an hour on Aug 22 resulting in an unexpected surge of investor interest. But the details of the price rise suggests it to be short-lived. Bitcoin is up by 1.09 percent on the day to trade at $6,477.72, though prices leaped by $370 to sell for $6,816.72 at 2 a.m.
Meanwhile, the investors are happy to know about the soaring prices of Bitcoin. However, the fact remains that virtual currency has no stability as the prices will fluctuate. Few investors still doubt cryptocurrencies credibility as the Bitcoin last week dipped below $6,000 for the second time this year.
Nevertheless, the rise in the price of the Bitcoin pushed the crypto investors to buy more of it. Short sellers, both in cryptocurrency and in traditional financial markets, bet against the price of an asset or security due to the belief the price will fall. If it does fall it can be then bought back at a lower price to make a profit.
According to the Express, while Bitcoin rose $400, Ethereum spiked 1.72 percent to trade at $298.91. Ripple is soaring by 8.61 percent to sell for $0.316306. Litecoin also rose 1.59 percent to trade for $57.43.
Bitcoin, as well as the other virtual currencies, are like a pendulum which is swinging back and forth. The price of the Bitcoin is oscillating with the investors having little to no knowledge that whether it will continue to rise even further.
The concept of cryptocurrency has many shortcomings. The rise in the price of the Bitcoin can prove to be in favor for some investors. But the rest of the others still question its reliability. Overall, cryptocurrency is paving its way in many sectors of the economy but has many drawbacks that one can’t overlook.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]