Even with the expanding acceptance of bitcoin, the cryptocurrency’s falling price had been steadfast, at least until Monday’s bounce from a possible floor.
By Sunday afternoon, Bitcoin hit a low of $290, and the virtual currency had lost about 18 percent of its value throughout the weekend.
But buyers are still out there, hungry to take advantage of bitcoin’s dips in hopes of riding a big move to the upside down the line. Early Monday, about $7.8 million worth of bitcoins were purchased after selling for about $300 each on exchange Bitstamp.
Bitcoin’s price had fallen through its 18-month average purchase price of $337.60, according to CoinDesk. But the 26,000 BTC sell order at $300 on Bitstamp brought a temporary halt to the falling price, and narrowed bid-ask spreads among the four exchanges in CoinDesk’s Bitcoin Price Index (BPI).
The Bitstamp sell order “was most likely a single investor looking to artificially move the price lower and buy back bitcoin later at a reduced price, probably in the low $200 range,” CoinDesk said.
By the European morning Monday, however, this apparent strategy likely backfired for the investor as buyers had snapped up the entire order and the BPI jumped up into the low-to-mid-$320s.
Bitcoin has seen its value steadily fall since December 2013, when each crytocurrency was briefly worth more than $1,100.
In late September, bitcoin got a temporary shot in the arm with PayPal’s announcement that it was putting in place platforms to let its merchants accept bitcoins. But the price jump from the PayPal move had eroded by last week.