Is the party over, before it even began for Bitcoin?
According to Coindesk, the price of Bitcoin is down about 27% from the $20,000 mark it reached over the past weekend.
That’s over a quarter of its value, folks.
“Prices fell to as low as $14,502 to start today’s trading session higher than $13,077.94, the lowest it got Thursday, and $13,130 in Asia on Friday morning,” according to CoinDesk’s Bitcoin Price Index.
CNBC reported that Bitcoin and several other major cryptocurrencies plunged Thursday evening New York time, and triggered temporary, built-in trading halts in the bitcoin futures traded on the CME and CBOE.
“Bitcoin cash dropped 26.9% to $2,660 according to CoinMarketCap, and another digital currency, ethereum, fell 17.3% to $719, while litecoin fell 16% to $277,” said CNBC.
Last Tuesday, Bitcoin lost $1,800 in one single day and analysts believe the price could experience further volatility towards year closing 2017.
Is this the end of Bitcoin’s fantastic voyage ?
Down but still up
Bitcoin 12-hour performance- Source: CoinDesk
CNBC said that despite the sharp drop, the decline took Bitcoin to only a two-week low.
“It was not immediately clear what caused the digital currency’s sudden dive, but the digital currency is still up more than 1,300% this year,” CNBC said.
“However, the declines followed a volatile few days for cryptocurrencies. The Bitcoin offshoot, Bitcoin cash, soared to record highs above $4,000 Wednesday, as crypto-marketplace Coinbase made a rocky attempt to make it possible for people to buy and sell the digital currency.”
It added that even with Thursday’s declines, Bitcoin cash is up more than 600% since it split from the original Bitcoin on Aug. 1 and Ethereum is up more than 9,000% this year, and litecoin is up more than 6,500%, quoting CoinMarketCap.
Correction or bubble?
According to CNN Money, some argue bitcoin is just taking a breather after a furious 2017.
“A correction like we are witnessing today is hardly surprising,” said Dave Chapman, managing director of Hong Kong cryptocurrency trading platform Octagon Strategy.
This time last year the virtual currency was worth less than $1,000, and CNN says the earlier rally was prompted by expectations that more and more mainstream investors will begin trading in it, especially as CBOE and CME futures trading platform gave it clout among institutional investors.
“But Bitcoin’s dizzying ascent has prompted a number of high-profile figures in finance and economics to sound the alarm, cautioning that the currency’s boom is simply a huge bubble,” opined CNN.
Among them are outgoing Federal Reserve Chairwoman Janet Yellen, who described virtual currencies as “highly speculative.”
CNN said Shane Chanel, an adviser at Australian investment firm ASR Wealth Advisers, thinks investors could start shifting their focus to virtual currencies other than Bitcoin over the coming months.
“I feel the cryptocurrency madness is only beginning,” he said.
One rising crypto
Ripple’s XRP, was the only major cryptocurrency trading higher on Friday.
CNBC reports that XRP topped the psychologically key $1 level earlier Thursday, and its gains accelerated throughout the session to a record high of $1.38, according to CoinMarketCap, and up 19,500% this year.
its market value of $47 billion is the third-largest just behind Bitcoin and ethereum, according to CoinMarketCap.
Ripple is the name of a startup using blockchain technology to develop a payments network for banks, digital asset exchanges and other financial institutions, with XRP being the digital coin that network participants use for transactions.