The price of crypto currencies has lowered since the past two days. Speculators who previously bought cryptocurrencies such as Bitcoin could be on a selling spree after prices of coins such as Bitcoin hit an all time high of $4,975 on Saturday last week. Cryptocurrencies have experienced up and down trends in the past. China banning initial coin offering is also to blame for the price drops, and this could be a sign of future price volatility of these coins.
Why cryptocurrencies hit an all time high last week
The prices of cryptos could have been driven by continued speculation in the market.
Bitcoin's price continues to rise as more speculators expect to gain more profits in the future. The price of Bitcoin increased by 49 percent in the past one month. This price increase cannot be compared to price gains of stocks, property, unit trusts and similar investments. Traders are also cashing-in on Meta Trader 4 platforms that allow leverage trading. With leverage trading, a trader can increase their profit from crypto trading by increasing their leverage.
The number of people that own and buy cryptocurrencies is also on the rise. The release of new coins into the market to miners is also on the decline. A drop in coin supply and an increase in coin demand has helped enhance the price of cryptos.
Top cryptocurrencies price gains and losses
Before the price drop, the price of Bitcoin had increased by 82 percent between August 2 and September 2. The crypto has lost 13 percent of its value since September 2. Ethereum gained 72 percent in value since August 2 to September 2. It has however lost 21 percent of its value since September 2.
Bitcoin Cash has also experienced the same price movement as Bitcoin and Ethereum. Between August 2 and September 2, its value increased by 90 percent. Its price has however devalued by 13 percent since September the 2. Ripple, the 4th largest cryptocurrency, on the other hand, had its price increase by 31 percent since August 2 and September 2.
Its price has however devalued by 12 percent since September the 2.
The future prices of crypto currencies
The future of cryptocurrencies will depend on the price movement of major cryptocurrencies such as Bitcoin and Ethereum. Bitcoin's price has been on the rise in the recent past. Its price reached an all time high of $4,975 on September the 2. Ethereum's price also reached an all time high on that day. Other cryptocurrencies are likely to experience a similar price surge. Prices of crypto currencies are likely to be boosted by investor friendly government regulation and investor confidence.
