Bitcoin: what’s causing prices to stall?
Cryptocurrency shows signs of its familiar volatility after months of solid gains

Bitcoin has gone from strength to strength during the first half of the year, but the virtual coin has shown signs of its infamous volatility over the past few weeks.
Following a tortuous 2018, when values slumped from an all-time high of $20,000 (£16,470) per coin in December 2017 to just $3,870 (£3,190) 12 months later, prices have gradually climbed over the course of 2019.
But after peaking at $13,040 (£10,740) in the middle of July, prices then fluctuated wildly in the ensuing weeks, according to figures from ranking site CoinMarketCap.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
As of 2.30pm today UK time, bitcoin prices sit at $9,980 (£8,220), some $1,000 (£820) off yesterday’s high and almost $2,500 (£2,060) down on the virtual coin’s August high, the ranking site reports.
What’s causing prices to stagnate?
Uncertainty appears to be the key factor behind bitcoin’s current volatility.
Some analysts have speculated that falling bitcoin prices may be the result of the ongoing trade war between the US and China, while others claim that uncertainty about Britain’s future after it is due to leave the European Union on 31 October, Forbes reports.
Another factor may be the US Securities and Exchange Commission (SEC) opting to delay its decision on three bitcoin exchange-traded fund proposals, the news site says. The ruling isn’t expected until the end of September or even mid-October, meaning investor activity in the US may stall until a decision is made.
But Mati Greenspan, a senior market analyst at eToro, believes that there’s little to suggest that recent global events are affecting the market.
“Many analysts have been doing their best to tie in the latest moves in the crypto market to the uncertainty in geopolitics but it’s difficult to say exactly how much connection there really is,” he told Forbes.
Where will bitcoin values go next?
The Daily Express claims that similar market trends occurred in 2018, when bitcoin “spent much of the second half of the year unwilling to stray north or south of $6,400 (£5,280)”. This year, however, it predicts that bitcoin will arrive at a “crossroads” and prompt more radical price movements over the coming months.
“Cryptocurrency being what it is means that an array of curious market forces is always at work and anything could happen,” the newspaper says. “There are few certainties here.”
In the meantime, though, the bitcoin market appears to be building a “bearish momentum”, potentially sending values downward over the coming days, according to cryptocurrency news site FXStreet.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Kaja Kallas: the EU's new chief diplomat shaping the future of European defense
In the Spotlight Former Estonian Prime Minister's status as an uncompromising Russia hawk has gone from liability to strength
By David Faris Published
-
7 ways to drink spectacularly across the United States this spring
The Week Recommends A bar for every springtime occasion
By Scott Hocker, The Week US Published
-
Test flight of orbital rocket from Europe explodes
Speed Read Isar Aerospace conducted the first test flight of the Spectrum orbital rocket, which crashed after takeoff
By Peter Weber, The Week US Published
-
What Trump's win could mean for Big Tech
Talking Points The tech industry is bracing itself for Trump's second administration
By Theara Coleman, The Week US Published
-
Network states: the tech bros who want to create new countries
Under The Radar Concept would allow you to 'choose your nationality like you choose your broadband provider'
By Chas Newkey-Burden, The Week UK Published
-
Paraguay's dangerous dalliance with cryptocurrency
Under The Radar Overheating Paraguayans are pushing back over power outages caused by illegal miners
By Chas Newkey-Burden, The Week UK Published
-
2023: the year of crypto instability
The Explainer Crypto reached peaks — and valleys — throughout 2023
By Justin Klawans, The Week US Published
-
Sam Bankman-Fried found guilty: where does crypto go from here?
Today's Big Question Conviction of the 'tousle-haired mogul' confirms sector's 'Wild West' and 'rogue' image, say experts
By Chas Newkey-Burden, The Week UK Published
-
FTX founder Sam Bankman-Fried arrested in the Bahamas
Speed Read
By Catherine Garcia Published
-
iPod creator launches new crypto wallet as industry fallout continues
Speed Read
By Justin Klawans Published
-
Is cryptocurrency still a good investment?
opinion The sharpest opinions on the debate from around the web
By Justin Klawans Published