After last week’s bankruptcy, Bitcoin prices have bounced back by 20%, traders keep pouring in.
It is hard to keep a good cryptocurrency down….
Despite the problems which led to last week’s Mt Gox bankruptcy, and with it the disappearance of about 5% of all outstanding Bitcoins, traders and investors have voted with their feet (and virtual wallets) to support the currency, sending prices significantly higher.
Many analysts and doomsayers were opining soon after Mt Gox’s troubles were revealed that Bitcoin was on its way out and that some of its attractions — anonymity, lack of transparency, lack of regulation — were going to be the cause of its eventual downfall.
But this past week’s market activity says differently.
While Mt Gox’s issues (as well as some temporary problems at rival Bitcoin exchange Bitstamp) dragged Bitcoin prices from above $800 down to the $500 range last week, they recovered this week to now sit (as of the time of writing) above $660.
Nice bounce.
Bitcoin one month price chart. Source: Bitstamp.
So where does Bitcoin go from here?
Well nobody knows of course, other than that there’s likely to be more volatility involved. But cit seems as though Bitcoin’s death knell seems to have been predicted much too prematurely.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.