Behavior of Bitcoin at the beginning of October
5. Oktober 2020
Get to know the details about the behaviour of the main cryptomoney, Bitcoin, during the first days of this October.
The most important of the crypto currencies, arrives to October in the middle of all kind of forecasts. Certainly, no one can say for sure what will happen to Bitcoin this month, but it is possible to explain its behaviour during these first days.
As for mining, Bitcoin continues to expand its Hashrate. The hash power of the world’s leading digital currency recently reached a new all-time high of 143 EH/s. However, at the beginning of this month, it has fallen back to 135 EH/s.
In relation to the price, it has fluctuated between $10,200 and $10,800. From 21 September to these first days of October, this margin has been maintained. These data were extracted from the graphs of the portal Blockchain.com.
Behavior of Bitcoin before the BitMEX case
As you may recall, the announcement of the COVID-19 pandemic by the World Health Organization (WHO) drove the price of Bitcoin down. Just as in past events, they caused the value of this cryptomone to plummet.
However, with the growth and progress that Bitcoin is experiencing, a significant degree of maturity has begun to be seen. The first days of this month, the earthquake that has meant the CFTC’s persecution against BitMEX, has not affected the price of Bitcoin.
As indicated in multiple news items, the U.S. Commodity Futures Trading Commission (CFTC), accused three members related to the aforementioned BitMEX, of violating laws related to money laundering.
In response to this news, users of the trading platform withdrew large amounts of BTC (equivalent to USD 425 million). This currency movement, however, was imperceptible to Bitcoin’s price behaviour.
Bitcoin old moves
Another important event that may have influenced Bitcoin’s price behaviour was the movement of Satoshi-era coins. Under other circumstances, this would have had a negative impact because it would have meant more liquidity in the market.
All of this indicates that, as stated, Bitcoin’s maturity has allowed for a significant degree of stability. This has been expressed during the first days of October.
On the other hand, it is important to highlight the hacking of the KuCoin exchange, from which some 150 million dollars were extracted in Bitcoin, Ether and ERC20 . Nor has any reaction been reported on the price of the main cryptomoney.
However, some analysts believe that these events have prevented the price of the pioneering crypt currency from rising, leaving it stagnant.
It should be remembered that hacking and other events such as those described above, cause great pressure to sell, which generates a collapse in the price. But the firm CyptoQuant affirms that KuCoin has experienced a minimal abandonment after the violation of its security.
Market capitalisation remains high
According to CoinMarketCap numbers, Bitcoin’s market capitalization is $ 196,852,087,162. This amount has remained relatively stable in the first days of the month, despite the events that have impacted the environment surrounding this digital currency.
Another aspect to take into consideration, in order to forecast Bitcoin’s behavior, is its quality as one of the best assets of 2020. Throughout the year, only once has Bitcoin been below gold and the S&P 500, and that was in March.
In a graph presented by Dan Held of Kraken, it can be seen that Bitcoin’s performance at the beginning of October is still well above the other two assets.
From all this, it can be said that, during the month of October, stability in the price of Bitcoin can be expected. For the time being, there are no signs that could indicate a sudden increase in price volatility.
As for its Hashrate, although it has fallen, the trend is to increase as the mining business expands around the world.