DURBAN - The price of Bitcoin has dropped 20 percent in the past month, with the largest intraday price drop of 18 percent taking place last week Tuesday, 24 September.
The current price is R133 196 having recovered slightly but still lower than the price of R168 152 achieved on 3 September. Luno, South Africa’s most popular cryptocurrency exchange, unpacks some of the reasons for this fluctuation.
Marius Reitz, Luno’s GM for Africa, said that while volatility is par for the course in cryptocurrency, there are several reasons for the price volatility. "Bitcoin and other cryptocurrencies have great potential to be effective tools for storing, maintaining and exchanging value – this hasn’t changed. In fact, people in South Africa are buying cryptocurrency for the first time every day despite the drop in prices," said Reitz.
There are four main reasons affecting the price:
Short term traders