Following Bitcoin’s stunning performance in December when it repeatedly burst beyond predictions, it has plummeted. Since its peak last month, the cryptocurrency has fallen by 50 percent, briefly falling under $10,000.
White-Knuckled Start to 2018
After its steady and rapid climb, Bitcoin tripped and fell down the hill, free falling for a while until it even dipped under $10,000 for the first time in six weeks. That said, it has since rallied, and had reached well over $11,500 by the time this article was written.
Within a period of only 18 hours, the cryptocurrency saw a trading range greater than $2,600. This has had many investors sweating and holding onto their seats. At its lowest point, it tumbled to $9,186, which was less than 50 percent of its high point last month.
Other crypto-coins like Ripple also took a hit – 75% down in the last two weeks alone.
Before too many people could think that the bubble had indeed burst and that Bitcoin was on its way out, it managed to rally once again. Last year, its value grew by a staggering 1,400 percent, which makes it easy to see why many people feel that the climb is temporary and that it is due for a plunge. Growth that rapid is frequently volatile and is typically unsustainable.
At the same time, Bitcoin represents the most valuable in an entirely new form of currency trading. Due to this novelty, it is difficult to know just what the future could bring.
After its lowest point this year, it rebounded by another $1,600 within a span of only four hours. This left it in a much healthier state and allowed many investors to breathe again.
Increased Regulator Scrutiny
Throughout the Bitcoin price rollercoaster ride this week, regulators have been losing confidence in the cryptocurrency. The crypto as a whole has, after all, dropped by a total of about $300 billion since January 13 alone. Bitcoin losses broke a new record of $140 billion when compared to its highest point on December 18 when the price reached $19,511.
Still, its price remains 1,000 percent greater than it was at the same time in 2017, which continues to make it promising for many people who have been trading in Bitcoin.
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