The price of a single bitcoin has fallen to around $5,500. Looking at the entire month as a whole, it is up by more than 55%. However on a daily basis, its value has decreased.
The culprit behind the sudden drop in value is the creation of Bitcoin Gold, which occurred on the 23rd of October. Bitcoin Gold is the newest cryptocurrency and has been developed using the same technology that was used to develop Bitcoin. The new cryptocurrency is now in the process of "forking," through which it will form a new blockchain and then distribute the new digital assets among the existing Bitcoin owners.
Spencer Bogart, the former head of research at Needham and Co., explained that the decrease in the price can be explained by observing the behavior of the investors. He clarified that the investors may be moving away from Bitcoin Gold now that it is forking. There may be various reasons behind the decline of Bitcoin price, as investors may have simply sold their positions to relieve pressure ahead of the forking.
Bitcoin pursued Bitcoin Gold in the hopes of providing its investors with the new cryptocurrency. It is unclear whether this was actually the case or not, as the new cryptocurrency has not yet been distributed.
What’s done is done. The question now is whether Bitcoin's value will continue to fall, or whether it can regain its losses. According to Coindesk, there is a potential for further losses. The losses can also be credited to the overbought technical conditions, or considered simply as a healthy correction of prices.
According to Coindesk, the price of Bitcoin may drop to $5,280 anytime this week. One must still consider the fact that Bitcoin has gone from a low of $2,980 to topping around $6,100 this month. This amount of growth is impressive and there are no signs of slowing down in the future. Bitcoin is expected to regain its losses with a week and could record values higher than $6,100, which was previously the highest price Bitcoin ever achieved.
Bitcoin Weekly Price