Weekly Bitcoin Price Review: The January Drop
This week is the last of January. We can summarize that this month Bitcoin lost $50 but Bitcoin has a lot of potential for growth.
The beginning of the week, on January 25, 2016 Bitcoin price was at the level of $397. On Tuesday, January 26, 2016 due to dropping oil prices we have seen another decline in Asian stock markets, but it had no effect on Bitcoin.
Until January 28 Bitcoin was trading at around $400. On January 27 the Federal Reserve released its decision to leave interest rates unchanged, which led to the strengthening of the US Dollar in foreign exchange markets, putting pressure on the price of Bitcoin.
BTC price dropped to $382.
Continuing the decline, on January 29, 2016 Bitcoin dropped to $366, but during the same day it returned to a price of $382. This became the price at the beginning of the weekend.
This week is the last of January. We can summarize that this month Bitcoin lost $50, as earlier this month Bitcoin price was $432 and by the end it is $382.
The key event this month, and the reason for the sharp decline in Bitcoin price, was the swan-song of former Bitcoin Core Developer Mike Hearn. He left the Bitcoin development community, undermining the fundamentals with ill-will, resulting in a protracted downward trend.
After this Bitcoin dropped to a price point pf 360$ on Asian exchanges. Moreover, the main competitor of Bitcoin – the Dollar has strengthened its positions again in January. US GDP in 2015 grew by 2.4%. Also, consumer spending showed the maximum growth over the past 10 years; this factor also contributed to the lack of growth of Bitcoin.
What will be the market in February, the future will tell soon enough. Bitcoin continues to have a lot of upside in 2016. We can assume that the price of Bitcoin has sufficiently decreased and soon we will see a reversal and resumption of uptrend. What do you think?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.