Bitcoin re-floats after pre-Christmas sink

Bitcoin bounced back over $16,000 [£11,900] on Boxing Day. It recovered some of the ground lost in a pre-Christmas collapse that pushed its price down below $12,000 [£8,900].

Bitcoin, the world’s biggest and best-known cryptocurrency, lost more than a quarter of its value in a single day. It fell 30% at one stage on 22 December 2017 to $11,159.93 [£8,318]. Despite a late recovery, it had its worst week since 2013.

The digital currency had risen around twentyfold since the start of 2017. It climbed from less than $1,000 [£745] to as high as $19,666 [£14,659] on 17 December on Bitstamp. It even went up to more than $20,000 [£14,908] on other exchanges. However, it has posted heavy declines since.

While bitcoin investors and analysts believe the decline in its value was a natural correction after a heady run-up in prices, there have been further warnings from market regulators and central banks.

Cryptocurrency entrepreneur Julian Hosp has said bitcoin’s rapid rise isn’t over yet. But there’s a catch.

“I think we’re going to see bitcoin hitting the $60,000 [£44,724] mark.

“But I also think we’re going to see bitcoin hitting the $5,000 [£3,727] mark,” said Hosp, co-founder and president of TenX.  TenX is a firm that wants to make it easier for people to spend virtual currencies.

“The question is though, ‘Which one is it going to hit first?'” he said.

Numerous high-profile critics and several national governments have warned of the dangers of investing in cryptocurrencies. The currencies, they say, are likely to crash because nothing underpins their value.

Singapore’s central bank warned last week against investment in cryptocurrencies, saying it considered the recent surge in prices to be driven by speculation and that the risk of a sharp fall in prices was high.

TNT Business

Photo Credit: pxhere

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