Another drop is in the books. The bitcoin price has fallen by about $10 USD since our last price piece and has hung around an even $600 for over 24 hours. However, a new announcement from the Winklevoss Twins’ Gemini exchange may give the price another bump.
Also read: Bitcoin Price Rises: How U.S. Trading Activity May Be Countering China
Enthusiasts have shown mixed reactions to bitcoin’s current state. The new Fed rates announced just a few days ago were expected to have some influence on bitcoin’s price, but so far, that influence seems to be non-existent. While gold and USD have changed somewhat, bitcoin is remaining relatively steady in its current position. This serves as possible evidence that the coin has lost some of its volatility, and is learning how to “play it cool” in an ever-changing financial environment.
However, changes are sometimes slow to occur. Maybe, the time for keeping a close eye on bitcoin has arrived. As one source explains, the “bitcoin market sometimes reacts early, and sometimes late, to emergent new market scenarios.” If the answer is “late,” what will bitcoin’s future hold? After all, digital currency doesn’t always react the way we’d like it to.
Right now, the bitcoin economy is considered “mildly bullish” due to the Fed’s concern regarding the “strength of the domestic US economy.” There is an implication of slowing operations in global markets; the US dollar has weakened, and investors are very careful with their money, so there is certainly room for bitcoin to grow in this time.
Winklevoss to the Rescue?
The market may be skipping towards bullish territory for the time being, but how long will that last, and what will bitcoin do through that period? Will it ascend north, or fall back down?
With this present wave of uncertainty, the Winklevoss Twins may once again be coming to bitcoin’s rescue. In their efforts to improve digital currency education and usage in America, the pair’s New York-based exchange Gemini will hold a daily, 10-minute bitcoin auction at 4 PM EST. The move is expected to make purchasing bitcoin easier and more efficient, and is being tailor-made for investors looking to purchase bitcoin in mass quantities.
Tyler Winklevoss explained to press:
“Daily auctions are common features in mature electronic marketplaces because they provide greater price discovery, liquidity, and transparency. In launching our daily auction feature, we are trying to bring the same modern trading mechanisms to the Bitcoin market.”
The auctions could be enough to push bitcoin’s price at the front end, and potentially make it the go-to financial entity in America as the dollar continues to shrink.
Will bitcoin enter massive bull territory in the near future? Post your comments below!
Image courtesy of CNBC, Gemini Bitcoin Exchange.