The price of Bitcoin three months ago was $1,123; the price rose to $2,725 in just seven weeks. This price rally seems to have stopped. Many speculators hoped to cash in as the price of Bitcoin, and other cryptocurrencies were expected to rise.

What may have caused previous price increase

Speculation was the greatest reason as to why the price of Bitcoin was on the rise since the beginning of the year. Investors always want an investment that can give them quick returns.

The prices of stocks never went up as much as the price of Bitcoin at that time. Another reason as to why Bitcoin price went up was because it is a well-known and trusted cryptocurrency. There are over 1,000 cryptocurrencies in the cryptocurrency market right now according to coinmarketcap.com which is a website that tracks the prices of cryptocurrencies, their market capitalization, current supply as well as volumes that have been traded in the past 24 hours. Bitcoin also has the highest market capitalization when compared to other cryptocurrencies. Its market capitalization stands at $42.8 billion. Ethereum has the second largest market capitalization which stands at $25 billion. Investors thus prefer to purchase a cryptocurrency that is not only reputable but one that has a high market capitalization.

Top Videos of the Day

Bitcoin's price may have been on the rise since the beginning of the year because of continued awareness of cryptocurrencies as an alternative investment option as well as its increased usage by online businesses and users.

Other top cryptocurrencies that are not doing very well

Ethereum, Ripple and the Etherium classic have also experienced a slowdown in their prices. For example, the price of Etherium on May 6 was $45; its price went up to $391 on June 13. Its current price is $269. The price of Ripple has also plummeted. On May 6, its price was $0.035097. Its price went up to $0.417936 on May 17. Its price has fallen to $0.256052.

The slowdowns may have been caused by

  • Lack of interest by potential investors.
  • The prices were too overvalued.
  • Some investors were concerned of a burst.

The future of cryptocurrencies

The future of these currencies is still not known. Many governments and central banks are still reluctant in allowing its citizens to use the cryptocurrencies. The central bank of Estonia called cryptocurrencies such as Bitcoin "a Ponzi scheme."

Some members of the public still don't understand how currencies are used or how they are beneficial to them since options such as debit cards, credit cards as well as PayPal are much safer to use.