Bitcoin Bounces Back Again – Beginning Of The End… Or Bump In The Road?

by Tyler Durden
ZeroHedge.com
Dec 26, 2017

>A crypto-Christmas miracle? Bitcoin is now unchanged from the pre-Friday bloodbath, having scrambled higher for the last 24-48 hours as much of the world enjoyed a day off.

The entire crypto space is rallying once again today but the question remains, is this another dead cat bounce on the way to ‘zero’ or is Tom Lee, John McAfee, and Mike Novgratz right, this is a bump in the road to $40k and beyond…

As The Economic Collapse’s Michael Snyder notes, Bitcoin, Ethereum, Litecoin and other major cryptocurrencies have been on a wild ride this year, and over the past 10 days the volatility that we have witnessed in the marketplace has been absolutely breathtaking. On December 17th, Bitcoin shot above $19,800 for a brief moment before it started plummeting dramatically. At one point the price of Bitcoin dipped below $11,000, which represented close to a 45 percent decline from the record high that it had hit just five days earlier. And Bitcoin was far from alone – virtually every other major cryptocurrency was also down between 25 and 50 percent during that five day period. But now almost all of them are bouncing back, and at this moment the price of Bitcoin is $14,219.99.

So where do things go from here?

There are many that believe that in the short-term the price of Bitcoin will fall back toward the actual cost of production. It has been estimated that the cost to produce a new Bitcoin is currently between three and four thousand dollars, and with the price of Bitcoin so high there is a tremendous incentive for Bitcoin miners to produce as many as possible right now.

The Rest…HERE

This entry was posted on Tuesday, December 26th, 2017 at 11:40 am and is filed under Economics, Technology. You can follow any responses to this entry through the RSS 2.0 feed.