is your single stop for crypto

Bitcoin’s Price Sees Drop Despite Initial Surge After Launch Of Fidelity Digital Assets – by Melissa Hart

Bitcoin Guest Post

Bitcoin’s price volatility has reared its ugly head yet again, as the cryptocurrency’s price has seen both a surge and a crash in just 24 hours after the announcement of Fidelity Digital Assets’ launch. The coin’s price surged to $7,044.61 at around 8:00 am on the 15th October 2018, before dropping to just $6,542.82 by 11:00 pm.

Bitcoin’s Price Sees Drop Despite Initial Surge After Launch Of Fidelity Digital Assets

The financial giant Fidelity Investments announced recently that they are launching a cryptocurrency trading platform with storage capabilities for businesses. This platform will feature regulatory functions and other institutional solutions, including security features, scalability and 24/7 availability for their clients across a number of different cryptocurrencies. At the time of writing, the only confirmed coins to be included in this platform are Bitcoin and Ethereum, though other coins are said to be due for an announcement soon.

Fidelity Digital Assets’ launch comes at a time where the business world often sees Bitcoin and it’s altcoins as a risky form of payment used mostly by criminals or tax evaders; and while there have been cases in the past where this has occurred, these digital coins hold the potential to change the way we operate within the financial markets for the better. Near-instant transactions, low fees and automated smart contracts across some crypto networks, offer businesses the chance to streamline their financial services and it’s this potential that has led Fidelity Investments to jump on the digital train.

As Tom Jessop, the founder of Fidelity Digital Assets stated, 

‘Family offices, hedge funds, other sophisticated investors, are starting to think seriously about this space…’

His announcement at Bloomberg’s Institutional Crypto event covered exactly what consumers and businesses could expect from the company’s new platform, and just why they’d taken the leap;

In our conversations with institutions, they tell us that in order to engage with digital assets in a meaningful way, they need a trusted platform provider to enter this space. These institutions require a sophisticated level of service and security, equal to the experience they’re used to when trading stocks or bonds.” 

Fidelity Digital Assets was created to fill a void in the cryptocurrency space to provide businesses with everything they needed to start operating within the crypto markets.  As a result of the launch, the price did begin to skyrocket; however, as Bitcoin tends to fluctuate according to demand and supply (as anyone who uses it as a payment option will tell you), this soon began to take a plunge.

Within just 24 hours, Bitcoin’s price has both surged and then lost around 0.5 of its overall value and for investors already within the markets, this particular fluctuation could’ve been a make or break situation. Those that took advantage of the surge may have made a tidy profit, although due to the sheer speed at which this price dropped, others may not have been so lucky.

Bitcoin’s Price Sees Drop Despite Initial Surge After Launch Of Fidelity Digital Assets

However, one thing worth remembering is that cryptocurrencies, in general, are a volatile commodity. While there are a number of ways to protect your trading profits, surges and plunges such as these are by no means easy to navigate.

The jerk of an initial reaction sent the price soaring from its original position at $6,310.54 at around 6:00 am on the 15th to its new high, but this spike certainly didn’t last long.

Within two hours, the price had dropped from $7,044.61 to $6,636.17 and left traders reeling from the fast-paced changes. Since that point, Bitcoin has done what Bitcoin does best and fluctuated in price, though this has been in a general downwards gradient over the past few days.

Ethereum has seen a very similar trend, with the coin’s price rising from $19.44 at 6:00 am on the 15th, to $227.57 by 8:00 am. The price didn’t seem quite as drastic of an initial crash, however, only dropping to $212.25 in the following two hours.

Whether the price is set to surge again, the near future is unknown and arguably unpredictable. Fidelity Digital Assets’ launch may have caused a spike, but activity within the industry can ultimately depend on a range of different factors. As demand and supply fluctuate, so does the price, and we’re eager to find out just what might happen next in the world of Bitcoin and Ethereum.

Article written by Melissa Hart


Disclaimer: This article should not be used as an investment or financial trading advice and reflects the personal views of the author. Please conduct careful due diligence before investing in any digital asset. The views, opinions, and positions expressed within guest posts are those of the author and do not represent those of Tokens24. The accuracy, completeness, and validity of any statements made within this article are not guaranteed. Tokens 24 accepts no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.

Leave a Reply

Please Login to comment