The bitcoin price continued its decline this week, deepening losses that began last week. However, fundamentals suggest there may be reason for optimism in the long-run. Bitcoin was trading at $352 at the start of the week, close to its high for the period. It dropped to a low of $320 on Saturday. It closed the week at $325, losing $27 over the seven days. That’s a drop of about 8%.
To put the latest price movement in context, last week’s Markets Weekly reported the Bitcoin Price Index at a high of nearly $390, before losing $40 over the week. The last two weeks, then, has seen the price of bitcoin drop some 17%.
The bitcoin price has fallen by 58% since the start of the year. It hit a high of $951 on 6th January and is at its lowest level for the year this week, according to daily closing prices on the BPI. The lowest price recorded this year was $286 on 29th September, although it rebounded to close at $319 that day.
News on Bitcoins
Amid the red candlesticks and declining bitcoin price, some market participants see reason for cheer. Barry Silbert, who invests in companies in the digital currency space through his vehicle Bitcoin Opportunity Corp, tweeted that bitcoin had crossed a milestone threshold of 50 million transactions last week.
The total number of bitcoin transactions has almost doubled from 26 million a year ago.
Total transactions, however, may not give a complete picture of bitcoin adoption. Breaking down the number of transactions for each day may be a more accurate indicator of the robustness of bitcoin activity. By this measure, bitcoin use is steadily increasing. Daily transactions is close to an all-time high of 98,921 transactions on 28th November. It hit 93,667 transactions on 29th October.
Bitcoin Financial News
The Financial Crimes Enforcement Network (FinCEN) published more detailed guidance for companies dealing in bitcoin in the United States this week. The latest guidance was largely seen as a dampener to the activities of bitcoin companies.
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