For Bitcoin, 2016 and 2017 saw strong starts, setting the tone for a year of sharp rallies. However, for the first time in three years, the world’s first cryptocurrency started a new year with a tumble. It went down to $13,957.19 on January 8th. Then, further, unable to recover and hold at $15,000 on the 9th. Interestingly, this has changed the rhetoric from what we heard at the end of 2017. Which, was predicting five-digit highs.
Last year, we saw an unprecedented wave of events that led to bitcoin exploding in popularity with mainstream society.
And, eventually reaching a growth of more than 1300%. This whipped investors and the general public into a frenzy. It led people who had never even heard of cryptocurrency technology, or who never considered themselves to be investors, to jump on the bandwagon. Thus an influx of the market with new capital and spiking of the price of bitcoin arose.
This new development follows the release of the futures contracts last month by the CBOE. (Chicago Board Options Exchange). And, by the CME Group. This led to an impressive rally. There were some warnings that the futures might only lead to a short-term rally. Which, for now, seems true. It’s impossible to say whether the cryptocurrency will bounce back yet again and shatter more records. And, if so when this would occur.
One thing does remain clear, cryptocurrencies as a whole are suffering in the new year. Sixteen of the largest cryptocurrencies have hit steep declines this week. It’s possible that talks of regulations coming out of Korea and China could be the cause of these falls. As developments continue to occur, keep an eye on our blog for the latest updates. And, remember that you could always buy gold and silver at the guaranteed lowest prices from Bullion Exchanges!
At the time of writing, Bitcoin is hovering at $14,429.15.
This article is third-party analysis. It does not constitute any financial advice, which can only be provided by a certified financial adviser.