We have seen a huge jump over the weekend and could exceed $10,000, however we have seen in the past that the bigger the bitcoin bubble, the higher the likelihood it will burst. This is what some experts say.
The poster boy of bitcoin reached an all-new high value. This saw all publicly traded cryptocurrencies take a boost, which include Ethereum. Ethereum jumped to $486, this is the first time it’s crossed the $400 mark.
So why will the bubble burst? In September, the bitcoin soared beyond expectations by reaching $5,000, but then the cryptocurrency dropped by more than 16% from it’s peak. After it’s drop, the collapse of Bitcoin2X happened. This then set up the (bitcoin cash) which was intended to be a “fork” of the original Bitcoin Blockchain.
China could also be a huge factor of the bubble bursting, In September, China outlawed ICO’s stating that they have “seriously disrupted the economic and financial order
” A drop in the market can potentially happen after a government disagrees against a cryptocurrency, but China’s opinions are likely to have a larger effect due to the number of cryptocurrency exchanges based in the country.
Could this happen again? It has potential to happen again, but on a greater scale because of the more dramatic rise. Obviously, nobody would want this to happen apart from the non-believers, but should we consider the September droppings, or will it carry on going up? Let’s see what the week brings.