Home Cryptocurrency News Bitcoin Bitcoin steadies after a rollercoaster Christmas

Bitcoin steadies after a rollercoaster Christmas

4 min read
0
77


LONDON — Bitcoin’s price stabilised on Wednesday
after several days of volatility over the Christmas period,

which saw it crash below $12,000 before recovering by more than
$4,000 in short order.

On Wednesday morning, bitcoin’s
price is little changed from its opening quote
,  trading
at around $16,200 per coin, a gain of roughly 3%. For normal
assets, a 3% move would be considered fairly substantial, but in
terms of bitcoin, it is a drop in the ocean.

Here’s how the cryptocurrency looks at around 8.20 a.m. GMT (3.20
a.m. ET):

Markets
Insider

“Although the recent plunge frightened many bitcoin fans, when
looking at the relatively short history of bitcoin trading, the
price action seems just normal. During 2017 the cryptocurrency
crashed by 30% or more six times. Every fall was followed by huge
price appreciation until it peaked on 17 December,” Hussein
Sayed, chief market strategist at FXTM said in an email a little
earlier.

“Whether the Bitcoin bull market is close to an end or just
pausing for a short break, remains to be a wild question for
2018.”

One of bitcoin’s biggest issues right now is that it is
difficult to value with any objective criteria, and traditional
investors remain very wary of it.

On Monday, Business Insider’s Jim Edwards highlighted a note from
investment analysts at Morgan Stanley
suggesting that
bitcoin may soon have a practical value of nothing
.

The analyst James Faucette pointed to the tiny number and the
middling number of retailers prepared to exchange bitcoin for
actual goods as reasons for a potentially rocky future. Faucette
said bitcoin was not like a currency or like gold and had
difficulty scaling.

In the days leading up to Christmas, bitcoin’s price plunged,

dropping below $12,000 to a loss of more than 30% at one point on
Friday December 22
.

Bitcoin’s losses were exacerbated by the fact that unlike
more traditional markets, it has no mechanism to halt trading
when there are large losses in its value. These are known as
circuit breakers, and they automatically pause trading when
assets fall by a set percentage.

Get the latest Bitcoin price here.>>

EXCLUSIVE FREE REPORT:
The Bitcoin 101 Report by the BI Intelligence Research Team.
Get the Report Now »

Let’s block ads! (Why?)


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Bitcoin Cash Price Analysis: BCH/USD’s Failure Near $900

Key Points Bitcoin cash price failed to move above the $900 resistance zone and declined a…