Bitcoin and ether prices rode a rollercoaster during the week ending 24th June, plunging lower at some points and pushing higher at others as market participants responded to global economic uncertainty.
The price of bitcoin approached $800, the looming ‘Brexit’ vote, the latest developments surrounding the collapse of The DAO and a trading outage at exchange Bitfinex all helped fuel these sharp price fluctuations.
When the week began on 17th June, bitcoin was trading at nearly $770, CoinDesk USD Bitcoin Price Index (BPI) figures reveal. However, the digital currency failed to “break through $800 and looked slightly overbought in the high $700s,” said Athur Hayes, co-founder and CEO of bitcoin leverage trading platform BitMEX.
Over the next several trading sessions, bitcoin prices would fall sharply.
Ether suffered even sharper declines, and more than one market observer identified issues surrounding the smart contract-based funding vehicle The DAO as being the single greatest cause of this depreciation.
Petar Zivkovski, director of operations for bitcoin trading platform Whaleclub, said The DAO’s loss of tens of millions of dollars worth of ether was “the main driver behind ETH’s current price swings,” while Xu Qing, spokesperson for Huobi, described the event as the “primary cause” of