Bitcoin is known for its meteoric rises and plummeting dips, but the price has not seen much upward momentum over the past few months. Ever since Bitcoin topped $20k in December 2017, people have been waiting for the bull market to return. However, there are a few things that may be keeping the price down. Here are a few reasons why Bitcoin might not be reaching new highs any time soon.
The Curious Case of Bitcoin’s Price
Since it’s creation, Bitcoin has been known for its dramatic price swings. Tenfold increase followed by a 90% drop were not a rare thing for Bitcoin, and it still isn’t today.
Bitcoin’s peak was at the end of 2017, reaching just around $20k before it started to come back down to Earth. After that, the price began to tumble more and more. When the dust cleared, Bitcoin had bottomed out at under $4,000.
Since reaching the bottom, Bitcoin slowly climbed back up. It has been bouncing between $7,000 and $11,000 for most of 2019. Many people are expecting good times to return soon enough. However, a large part of the community remains skeptical.
1. Slow Adoption from Institutional Investors
For years, there has been much talk of institutional investors entering the cryptocurrency space. Bitcoin’s properties, such as decentralization and security, make it a great investment vehicle for all types of traders. However, institutions remain hesitant to take the full plunge. There have been a few strides into that space, such as institutions offering Bitcoin futures contracts and other cryptocurrency derivatives to investors. Many hoped that the launch of the Bakkt platform would attract investors, but it’s been off to a very rocky start.
There seem to be two big reasons why institutions continue to have cold feet.