Bitcoin Price Falls
In the last several weeks the Bitcoin price went down as a result of the bad news from China and Greece.
Greece was once again found in the danger of a a debt crisis and China faced Stock Market collapse. There was some optimism in the Bitcoin community hoping that the next recessions will give Bitcoin the opportunity to “rise and shine”. At one point last week Bitcoin Price hit the resistance of $300 then stabilizing between $280 and $300
There is a powerful control in Greece regarding the control of capital so the ability to purchase Bitcoins was almost nonexistent. Even if Greeks found Bitcoin to be a “safe haven” they couldn’t buy it.
Mark Karpeles – the former CEO of MtGox Bitcoin exchanger – was arrested on 1st of August by the Japanese police for committing fraud. Karpeles then admitted the manipulation of users account balance for his own personal gains. It’s possible that he even fabricated millions of US Dollars. After the news of Karpeles arrest the Bitcoin price went down to $270 then returned at $280 and staid at that level. Then the Bitcoin price went down again.
Bing announced a great decision of adding Bitcoins to the Bing Rewards program, a news welcomed by the entire Bitcoin community.
Even if Australia announced to rethink its position on Bitcoin taxation to treat it like a regular currency the Bitcoin price continued to stay low.
Also, Blockchain.info made it in the news for another flaw in their system regarding Blockchain.info’s pushtx-api that led to a spoofed transaction, a problem that was fixed. However, the company’s credibility suffered.
Where will the Bitcoin Price go Next?
Bitcoin’s recent price movement raises the question: how low the price can fall? It’s hard to answer this question.
It’s better to analyze how much of the recent Bitcoin price movement was given by the crises in China and Greece. If we take into consideration how fast the price went down the previous week we can say that the speculators were the one who made the price and not ordinary Greek and Chinese people wanting protect themselves from the financial collapse in their countries.
The price will probably stabilize between $240 and $265 because is not in speculators interest do get the price even lower.