Bitcoin price: is the market heading for a ‘perfect storm’?

Bitcoin’s turbulent summer has been followed by an equally rocky autumn – and it could have major repercussions on the cryptocurrency industry as a whole. 

The virtual coin made continual gains throughout the first half of the year, rising from a low of $3,400 (£2,600) in January before peaking at around $13,800 (£10,700) in June, according to ranking site CoinMarketCap. 

But values quickly tumbled in July, slumping to $9,500 (£7,380) until falling a further $1,100 (£855) by the beginning of October, the ranking site notes. As of 2pm UK time today, bitcoin was trading at $8,000 (£6,210).

The market’s immediate future looks bleak, too, with trading news site U.Today claiming that investors are bracing for values to drop towards the $6,000 (£4,660) mark.  

Is a “perfect storm” brewing?

Quite possibly. Not only have bitcoin values slumped in recent weeks, but trading volumes – the amount of bitcoin traded in a given period – are down to less than $200m (£155m) per day, a…