On May 24th last week, cryptocurrency Bitcoin saw an all time high of $2,791.69. But the currency fell $520 or 17% in the next five days wiping out nearly $4 billion of Bitcoin value. The pullback was seen as just profit taking, a short term correction for the skyrocketing prices during the last week.
Traders predict that the $2800 will become a level of resistance for the cryptocurrency where from the currency will pull back. However, some experts contradict that the short term correction will not hinder the price rise as macro factors related to the increase in crypto currency have not changed.
Some of the major factors affecting the currency have been; Japan’s acceptance of cryptocurrency, major businesses investing in the block chain technology for its contractual applications and (Initial Coin Offerings) ICO’s form startups to help garner support for cyrpotcurrencies.
Long term effects of currency have made investments in Bitcoin lucrative over the course of years as experts predict that the new forms of cyrpotcurrencies will replace rival fiat currencies in the coming few decades.