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After seeing the price of Bitcoin rise to over $13,000 this month, we saw a sharp drop in the price this morning as it fell under the $10k mark. This is the first time it has been under $10,000 since the July 2nd. But the price of Bitcoin didn’t stay long under $10k. It’s back over $10k, currently priced around $10,639.00, at time of publishing.
Bitcoin’s price is volatile – We are used to it
Anyone who’s been around the crypto market for a while is used to its extreme volatility. We have to remember that the price of Bitcoin was as low as $3,200 earlier in the year.
So no matter how the headlines will spin this drop, it’s been an incredibly positive time for Bitcoin this year.
The Federal Reserve is comparing Bitcoin to gold
The attention surrounding Bitcoin and the cryptocurrency market is truly back in good form. Just last week the Chairman of the United States Federal Reserve Jerome Powell testified before the Senate Banking Committee in a hearing focused on the question on whether Bitcoin or other cryptocurrencies can one day remove the need for reserve currencies (or anchor currencies) like the USD, GBP and EUR which are used by governments to engage in currency exchanges with other countries.
Considering that this question was even brought up is in itself a huge step forward for the cryptocurrency space. It has further legitimized Bitcoin and other cryptocurrencies.
And what Chairman Jerome Powell’s statement at the hearing could further be interpreted as a positive signal for Bitcoin and cryptos.
“I think things like that [the obsolescence of today’s reserve currencies] are possible but we really […] haven’t seen widespread adoption.