Bitcoin Market Undergoes Correction After Massive Price Haul

Since reaching the all-time high of $7500 on November 5^th, the ever-growing market of cryptocurrencies has shown major correction bringing down the price of Bitcoin to $7270 over the last twenty-four hours. A report published by CNN recently threw light on the fact that the entrance of retail and institutional investors belonging to traditional financial industry into the Bitcoin periphery has hiked up the Bitcoin Price to a record $7598.

To be specific, the investor base comprising of enthusiasts from South Korea and Japan have been converting their corpus into equivalent number of Bitcoins given its ever growing craze. Offline exchanges such as Coinone and Bithumb operating in South Korea have been growing rapidly as investors lacking technical prowess over the crypto world is seeking out direct person-to-person assistance in the spheres of trading, purchasing, managing and storing Bitcoins.

As a 53-year-old bitcoin investor recently stated that:

“Due to the emergence of physical cryptocurrency exchanges and offline customer service operations launched by CoinoneBlocks and Bithumb, many investors in South Korea are rushing to sell their stocks and equity in public companies to invest in cryptocurrencies such as bitcoin. Since the beginning of 2017, the demand for bitcoin has increased significantly and investors have been able to build trust over the cryptocurrency exchange market through offline exchanges.”

Also Read: Goldman Sachs Indicates Bitcoin Price May Reach $8000

The report stated that, “In Japan and South Korea, two regions in Asia that are known to have extremely conservative investors and traders, have seen an exponential increase in the demand for bitcoin from local traders. In an interview with Nathaniel Poppers of the New York Times in October, Korbit founder and CEO Tony Lyu emphasized that once people are invested in South Korea, they encourage others to join the ‘party.’” Lyu said that, “word just spreads really fast in Korea. Once people are invested, they want everyone else to join the party. There’s been this huge, almost a community movement around this.”

Japan has already started accepting Bitcoin as a major payment medium where it can be used to pay for everything starting from hotel fares to online purchases. Bic Camera, the largest retailer in Japan, major airline Peach, budget hotel chain Capsule and Remixpoint, the country’s largest grid operator have already started accepting Bitcoins in exchange of their product or service.

The increasing liquidity and maturation of the bitcoin exchange platform has triggered its momentum of attracting bulk investor base from South Korea, US and Europe over the last one month when the price of Bitcoins surged gigantically from $4400 to $7598. Within a span of one month, this accounted for an increase of more than $3100.

Bitcoin experts such as Tom Lee, the Wall Street strategist of Fundstrat has set out a note of caution warning investors about the probability of future market corrections which has been in the pipeline for long. Its enormous price increase is considered unstable even with the exponential growth standards of Bitcoin.

Minor corrections in the Bitcoin market have initiated new rallies and stabilized its short-term price imparting a renewed zeal to its operations. The announcement by CME to launch Bitcoin futures by year end is all set to impart an added inertia to its price curve in days to come irrespective of the November 16^th’s fork of SegWit2x.

Prominent experts such as former Coinbase executive and Litecoin creator Charlie Lee has pointed out that a major correction could crop us as a direct result of the hard fork if investors choose to reallocate their funds to alternative cryptocurrencies from Bitcoin. Lee also added that investors realigned their funds to Bitcoins from Altcoins for obtaining B2X or SegWit2x tokens following the November 16 hard fork. In such a case, the price of Bitcoins might decline subsequently.

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