Experts in IT systems audits report that, over the last 24 hours, the total value of the cryptocurrency market dropped from $386 billion USD to $328 billion USD; Bitcoin reduced its value from $13.8k USD to $10.5k USD per unit.
After showing a high level of resistance to the effects of this widespread fall and approaching a new limit of $14k USD, the value of Bitcoin fell by 23% at the close of the last day.
The value of Bitcoin tends to suffer considerable falls in a bull market environment. “The last time there were bull market conditions, the value of Bitcoin suffered eight sharp falls”, says Matt Kaye, a cryptocurrency community specialist. “As with any other asset, even in a strong bullish movement, the price of Bitcoin tends to show wild volatility in short time frames”.
In 2017, when Bitcoin reached its all-time high of $20k USD, the cryptocurrency fell eight times, totaling 36% worth loss. “Bitcoin is a volatile asset. Its value should increase as it becomes scarce and desired; this is always the case, the law of supply and demand works in this way,” say experts in IT systems audits.
After the price drop to $10.5k USD, the virtual asset recovered quickly to $11.5k USD, almost a 10% increase in price.
Specialists point out that Bitcoin has not yet experienced a serious drop since it began its uptick a few weeks ago. Forecasts indicate that, if the upward trend continues, the value of Bitcoin could reach a limit of between $13.8k USD and $14k USD.
Bitcoin recently exceeded the limit of $11k USD after nearly two years, IT systems audits specialists from the International Cyber Security Institute (IICS), mainly due to two factors: the confidence they have shown some international companies in virtual assets, and the announcement of Libra, the Facebook cryptocurrency that aspires to become a global means of payment.