During the past two weeks, bitcoin has been extremely volatile as it has experienced a flash crash down to the $400 level. Since then, the price has bounced back to over $500, however whether this relief rally will continue is still to be seen. Exactly why this sharp correction has occurred is largely unknown and has left the community to speculate about why this crash has occurred. Was it manipulation? Was it due to margin trading? Was it Tim Draper getting cold feet and selling some of his holdings?
The main difference between this sharp price correction and preceding ones is that this crash happened on almost no bad news. From this point forward, the price could continue correcting down to lower levels, could start creeping back up or could simply consolidate sideways. However it seems that for now, the consensus in the market is that the downtrend has not fully concluded and we could see some more downward pressure over the next few weeks.
Ebay and PayPal may Integrate Bitcoin Through Braintree
During 2014, we’ve seen some of the largest online retailers and service providers accept bitcoin. As a result, these corporations have benefitted immensely from accepting this cryptocurrency with increased earnings and customer acquisition. These large corporations, such as Overstock.com and Dish Network have assisted in legitimizing this innovative technology.
According to the Wall Street Journal, eBay has been quietly working to integrate cryptocurrencies into its Braintree payments subsidiary which is part of its PayPal unit. The integration of bitcoin into Braintree, which processes over $12 billion in payments annually, would be a major step forward for the adoption of bitcoin payments.
This story may become a reality sooner than people think since Ebay’s Chief Executive John Donahoe said that he was considering ways to integrate bitcoin into the eBay infrastructure. Bitcoin adoption has been on the rise during 2014 and it seems that this trend is just beginning.