With bitcoin prices fluctuating within a reasonably well-defined range over the last week, trading primarily between $6,000 and $6,600, the value of Nigerians’ stake in the cryptocurrency further declined last week.
From N1.604 billion earlier this month, the value of the volume of bitcoins traded in Nigeria was down to N1.387 billion as the value of Bitcoin tumbles at the cryptocurrency market.
This is a downward trend considering N1.733 billion which it was at the beginning of last month suggesting caution on the part of Nigerian traders.
The bitcoin price has bounced from highs of $8,500 to lows of $5,800 over the last three months, not to mention the 70 per cent drop in the bitcoin price since December last year, and has caused many recent investors to despair.
Earlier this month, the United States’ Securities and Exchange Commission (SEC) delayed its decision on a proposed bitcoin exchange-traded fund to the end of September — something many investors were banking on to bring a fresh wave of investment to the world of bitcoin and cryptocurrencies.
The decision sparked a bitcoin and wider crypto sell-off and suggests the SEC still has concerns around bitcoin’s volatility and possible price manipulation in the largely unregulated cryptocurrency market. However, the CEO of major multi-asset trading platform eToro, Yoni Assia who oversees one of the biggest online trading platforms in the global finance sector with more than eight million users, believes that the demand for Bitcoin and cryptocurrencies as an emerging asset class has not declined even after the 78 percent correction in the valuation of the crypto market
According to him, market correction was necessary in order for the crypto market and industry to mature, establishing a foundation for future rallies.
“Cryptoassets are still a relatively nascent market; emerging technologies like this often see swings in their value in the early days. Market adjustments like those we have experienced recently help to stabilize prices, and make the industry more robust. Despite these adjustments, however, we have not seen a significant dip in demand for digital assets.”