Skeptics and believers of Bitcoin will have trouble predicting the future of the cryptocurrency after a series of volatile swings pushed its price to a record high then dropped to less than half that value.
These abrupt changes underscore the extremely speculative nature of investing in the cryptocurrency.
By Wednesday, the price of bitcoin fell below $10,000 for the first time since December 1, 2017, – at one point dropping to less than $9,300. Since then, the price has since risen back to around $12,000, but economists and investors are unsure how long it will stay there.
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Bitcoin prices saw a similar rise and fall in December 2013. The digital currency hit what was a record price of around $1,150 at the time and fell by 40 percent just days later, after China announced that it was banning banks from trading the cryptocurrency. In a similar vein, Bitcoin was valued around $900 in 2017. It tripled its value within months — then, by the end of the year, tripled again.
Some commentators suggest that the recent slide was due to fear over regulatory crackdowns on the cryptocurrency market.
Recently, Reuters reported that the South Korean government has suggested a ban on Bitcoin, although these plans have not yet been formally announced. Similar reports from China have also come to light. Anxiety over anticipated crackdowns may have triggered a selloff across the cryptocurrency market on Tuesday.
Bitcoin is a decentralized digital currency bought and sold in exchanges internationally. It is the largest and best-known of hundreds of digital currencies. However, the recent price fall may not sound too encouraging for investors as many other digital currencies have also shown similar swings in recent days.