According to cryptocurrency expert Ian King, spikes of volatility in the S&P Index have coincided with rises in the price of Bitcoin. An advantage of Bitcoin is that there is an ability to produce a hard fork. This is what happened with Bitcoin Cash. People basically were able to get extra cryptocurrencies for free. There is a concern that hard forks will lead to a drop in prices for both cryptocurrencies, but as we have seen with the hard fork involving Bitcoin Cash, prices rose soon after they dropped.
Even though Bitcoin continues to be unpredictable, the volatility of Bitcoin is going down. At the beginning, prices used to fluctuate by around twenty percent each day. Nowadays, prices still fluctuate, but only at around five percent each day. According to Ian King, the volatility of Bitcoin will continue to decrease, which will make it more stable and appealing. Bitcoin is becoming more and more appealing as stock markets continue to be unpredictable. View more on Ian King at Stock Twits for more updates
However, certain factors can and do cause Bitcoin to drop dramatically. One such thing was the news that Chinese regulators were going to crack down on Bitcoin trading. That caused a drop in the price of around thirty six percent. China is home to a large portion of all traders and miners, and they decided to ban all exchange trading. Other cryptocurrencies saw large drops as well. They had previously announced their intentions, but nobody expected them to follow up so quickly.
However, there was another time when China caused cryptocurrencies to drop. This was when they announced that banks would not be able to deal with cryptocurrencies. However, at that time, people who bought during the drop saw increases of up to six hundred percent. Learn more at medium.com about Ian King for more updates.
Fortunately, methods such as the Fibonacci Replacement analysis method can help determine how Bitcoin will do after a drop. According to Ian King, the lesson from the story is that Bitcoin can drop dramatically, but at the same time, this provides an opportunity to make it big by buying during the dip and then profiting when the prices inevitably rise again.
Crypto being the “next big thing” is leading to price rises that markets have never witnessed in history.
— Ian King (@IanKingGuru) January 12, 2018
Ian King is one of the top contributors to the famous investing site Investopedia on the topic of cryptocurrencies. He also works with Banyan Hill Publishing to produce content that informs people about the latest news and tips relating to Bitcoin and altcoins. Visit:https://banyanhill.com/expert/ian-king/