The bitcoin market
performance is stable at the moment with the price and trading volume both
remaining relatively flat. The bitcoin price had opened this week at $375.24
and it has gradually climbed just below $2 and closed this week at robust
$377.09, as per the CoinDesk Bitcoin Price Index.
The Bitcoins trade
volume across all the exchanges had fallen down by a slight margin of 2.4%. The
Bitcoins trade volume is tracked by the Bitcoinity across all the exchanges
which operate in different corner of the world. The number of bitcoins being
exchanged among the people for this week ending o 30the November was 3.59
million, while last week the number of bitcoins traded were 3.68 million.
The drop on most of
major exchanges was more pronounced than others. Bitstamp and BTC-e recorded
around 20% and 17% drop in trade volume respectively. However this trend was
not followed by the exchanges ANXBTC and Huboi and both of them reported an
increase in the trade volume by 12%.
Commodities Market Crashes
Bitcoin was regarded as
a special commodity like the ‘gold’ as Willem Buiter has said earlier. But it
isn’t showing such tendency as the gold trade is depreciating with passing week
while crypto currencies is getter stranger with each passing week. Gold has
slid to its five year low after the voters in the Swiss referendum had rejected
a bid to boost the central bank’s reserves of the precious metal.
Markets analysts were
expecting a spike in the gold price if the Swiss national bank were forced to
take on gold hoarding measure. But this referendum had changed the equation and
the gold price fell by another 2%.
Metal Market Crashes
Metal prices are going
down the hill with fall in the price of the oil. Copper is plunging into a four
year low along with the lead and nickel. Last Thursday an announcement by the
world’s major oil producing nations that they would continue to maintain the
production levels has resulted in plunging the Brent crude to $68. The
continuous slide in the price of oil is so steep that the analysts are
predicting a time where oil would cost just $40 a barrel which would mean a
fall nearly 40% within this year.
Fall In Commodity Price Boosts the Price Of Bitcoin
The steep decline in commodity market is
accidently pushing the price of the bitcoin. LocalBitcoins which is popular hub
for peer-to-peer bitcoin sales ahs asserted that the traders always to preserve
their privacy which is actively provided by the bitcoin network and this has
resulted in an increase in the trading volume.
To sum it up we can
easily conclude that Bitcoin is here to stay stronger in coming weeks though
the other commodities would keep sliding down the charts. If you are going to buy bitcoins for long-term investment
or personal use purpose then you could easily go ahead without the fear of huge
fluctuation in its price.
SOCIALIZE IT →