Bitcoin down 20% from all-time high earlier this month

“Bitcoin Wallpaper (2560×1600)” (Public Domain) by PerfectHue​

Bitcoin has had an extremely turbulent March, hitting an all-time peak, before quickly entering into a steady decline in value. Cryptocurrency veterans are well aware that Bitcoin is an extremely volatile instrument. Its value is impacted extremely quickly by stories breaking in the news and media, as savvy investors look to buy and sell at the opportune time.

In the week beginning March 19, two pieces of Bitcoin-related news circulated around the internet which caused BTC value to drop. This development immediately followed the value of 1 BTC hitting all-time highs throughout the end of February and the start of March, trading at over $1200.

The value of cryptocurrencies are increasing across the board

As more people are coming around to the idea of cryptocurrencies, their usage is spreading. The uptake in the tech isn’t just limited to Bitcoin, either. Recently, competing cryptocurrencies such as Ethereum and Dash also hit all-time high values.

Part of this will be down to the development of services and infrastructures that make it possible to actually spend cryptocurrencies. For a long while, this is something cryptocurrencies struggled with. It was possible to mine and hold coins, but it was tricky to spend them on popular items. However, there are now payment platforms such as Bitpay and Litepaid that are helping people to spend their Bitcoin and altcoins.

Digital services are adapting to Bitcoin and cryptocurrencies at a much faster rate than other traditional shops and outlets. This isn’t surprising as the digital currency is deeply rooted in the tech sphere. The gambling and gaming space is enjoying a surge of Bitcoin custom, with Bitcoin-only gaming vendors starting to appear around the web. One example is Sportsbet.io, who are a Bitcoin-only live sports betting platform with fully anonymous registration and playing. Because of this, it’s possible to visit now, register, deposit funds and be betting within minutes. This fills a gap in the market, providing a gaming outlet for those with Bitcoin reserves, which is something most major gaming providers do not currently do. In time, as Bitcoin continues to grow in popularity, this is expected to change – and not just within the gaming industry, but across many other markets.

Is the drop in value a bad thing?

Peaks and troughs with any currency should be looked at as part of their wider contexts. Whilst the recent drop in Bitcoin’s value may seem steep, the reality is that Bitcoin is, and always has been, extremely volatile. In real terms, BTC value is up 142% year on year, which gives a much clearer picture of the currency’s true value and growth over time.

Bitcoin’s value will presumably continue to be unstable as people cash in on the coin’s current high value. People still seem to be undeterred by the flux in prices, with plenty of people still buying coins. This could be because they are envisaging another rally in value and want to be holding coins for when the next price increase appears.

Overall, the past month has shown us how far the currency has come, but also how unpredictable it can be. Many will be keeping a close eye on Bitcoin news and markets following market uncertainty and fears surrounding a possible blockchain split. One thing is clear, though: Bitcoin is helping other cryptocurrencies peak in value, helping to generate interest in other disruptive currencies.