The Bitcoin market is never boring and this past week didn’t disappoint with the flash crash to $380. The price has since rebounded and Bitcoin is currently trading at $414. One of the main factors which undeniably contributed to the price slump is Bitcoin’s transaction backlog which occurred around March 3rd.
Last week the network got flooded with spam transaction, which effectively increased the fee required to confirm transactions in a timely manner. As a result, many services that accepted Bitcoin received a flood of customer complaints that their payments weren’t going through. This caused many merchants to remove Bitcoin as a payment options from their store, furthermore an article published on The Verge titled “Bitcoin’s nightmare scenario has come to pass” received an extraordinary amount of shares which also attributed to the weekend selloff.
— The Verge (@verge) March 5, 2016
Bitcoin proved once again to be quite resilient as the market rebounded after the sharp selloff, the next hurdle up is