The new year hasn’t been very happy for Bitcoin so far. Bitcoin has been experiencing a steady price decline since it hit the news and headlines in 2013, and now it is back below the $300 mark. Bitcoin’s total transaction volume, as measured by Blockchain has also slipped in the past few days.
There are many theories doing the rounds about this slump in value – the most popular one being the lack of any uniformity in the Bitcoin community. The decline in trading volume indicates a decline in short term, buyer side interest in Bitcoin. What is still unclear is why it would occur at the start of the new year.
The charts showing the decline are here; along with the prices:
The new number of transactions per day is as follow:
The price of Bitcoin isn’t much a of a concern in the short-run. It’s only in the longer run and for bigger transactions that it will prove to be a problem. The rapid decline in volume is, however very surprising. This is a critical time for the fans of Bitcoin because they will have to ask themselves an important question – To invest more, or not? Whether to back off or stick around till the prices go up again?