Bitcoin price: Why the sudden crash?

Chris Burns - Jan 22, 2018
Bitcoin price: Why the sudden crash?

Bitcoin prices fell this morning across all exchanges, not necessarily because of any one news item, but of a combination of elements. The value of Bitcoin is volatile – that’s not likely going to change any time soon. As such, even the smallest push can send the price of the cryptocurrency off a cliff. But it hasn’t fallen for long – not for a while, anyway.

Bitcoin follows patterns, but only on a small scale. The future of Bitcoin is not set – as evidenced by the wide variety of chatter on the coin and the cryptocurrency market at large. Take for example Yale economist and Nobel Prize winner Robert Shiller.

Shiller spoke with Quartz this past September. He spoke specifically about how Bitcoin was a bubble. He was asked what his best example was of a speculative bubble and/or irrational exuberance, and he said Bitcoin.

“The best example right now [of irrational exuberance] is Bitcoin,” said Shiller. “And I think that has to do with the motivating quality of the Bitcoin story. And I’ve seen it in my students at Yale. You start talking about Bitcoin and they’re excited! And I think, what’s so exciting? You have to think like humanities people. What is this Bitcoin story?”

Fast forward to January 19th, 2018 on CNBC, and Shiller has a slightly expanded story to tell. This time he suggests that while there is indeed a bubble going on with Bitcoin, it could last a very, very long time. “[Bitcoin] might totally collapse and be forgotten and I think that’s a good likely outcome but it could linger on for a good long time, it could be here in 100 years.”

At the same time – and also with CNBC, Peter Boockvar, the Chief Investment Officer at Bleakley Advisory Group spoke up mid-day Sunday (yesterday when this article is set to be published.) When asked “how low Bitcoin could go,” Boockvar said the following. “I think over time, Bitcoin’s gonna be around for a long time, but the price itself I wouldn’t be surprised if over the next year is down to 1-3-thousand.”

Bitcoin is sitting in at right around $10,490 USDT at the time this article is set to be published. That’s down around 9% over the past 24 hours, most of that fall having happened in the last couple of hours. Bitcoin VS USDT is also down from its $13,000 high this weekend.

OF NOTE: None of the above should be considered financial advice from SlashGear or the author of this article. Seek out financial experts before making any sort of investment or money move whatsoever. All actions taken before, during, and after reading this article are the reader’s responsibility alone.

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