If you missed the exception buying opportunity yesterday, here's the recap. Bitcoin's price dropped briefly into the upper $630's, however, this was short-lived It rebounded quickly hitting $685.65 before settling in around $660-$670 and now sits at $662.00
There's a few reasons for the opportunity, the most obvious being the supply supplement of over 24,000 bitcoins worth around $19 million. Australia is auctioning off the bitcoin they confiscated back in 2014 after Richard Pollard failed to adequately appeal the decision to seize them related to drug trafficking charges.
Currently there are 3600 bitcoins produced each day, with the halving coming up in a couple weeks, that number is going to go down to 1800. The Australian auctions supplements this by 24,500 coins. In theory this would extend the halving squeeze on supply by approximately 13 days and about 12 hours (half a day) and with OTC firms like Genesis and itBit (they are still alive apparently) taking their share of the auction among others, it's safe to assume that's exactly where these bitcoins will be going, back into circulation.
This alleviates the strain some, but not by much and the pressure will certainly be felt by September if not sooner. That is predicted to have a positive influence on the price.
An additional factor that may have had an affect on the price was the Bitfinex exchange going offline for a period of time. The dip seems to coincide with that technical outage.
“We believe that internal networking issues between our servers have been resolved, allowing us to reliably run the backend systems, including the trading engine. External connectivity issues remain, however, which may result intermittent unresponsiveness as our hosting provider continues to work on the problem.”
...said a Bitfinex spokesperson about the outage and the downtime was short lived.
Day Traders Delight
The third factor is the swaying market, day traders are intentionally pushing the market in different directions as best they can to take advantage of the margins. This is something that was once commonly done, but with the current 10 billion plus market capitalization, the market is not so easily influenced these days.
Regardless, day traders are enjoying earnings with the large point variations. For long term investment holders, this was certainly a buying opportunity. With bitcoin currently at $662 this opportunity is not as good as it was yesterday, but certainly still viable.
Get on it.
Report by dinbits
Image by dinbits.com staff
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