Following a brief rally that started last night, today, bitcoin plunged back below $ 15,000. However, on the other hand, Ethereum grew to $1,215, going towards its highest level ever.
Yesterday, the price of Bitcoin dropped as much as 10 percent. However, Ethereum was able to regain its spot as the second most valuable cryptocurrency in terms of market cap after Ripple fell off of a recent high.
The senior market analyst at Oanda, Craig Erlam, said: “Bitcoin continues to be as volatile as ever.”
At around 1:30 in the afternoon today, bitcoin was down to almost two percent at $14,718.
Erlam said: “I wonder whether the sell-off over the festive period has knocked speculators confidence in it to make the kind of recoveries we saw at times last year.
“The inability to make these kinds of recoveries may just be temporary and a period of stability may be sufficient to draw traders back in, but I wonder whether another correction may take place before that happens.”
The chief market analyst at Think Markets, Naeem Aslam, stated that bitcoin is at an important junction because of regulatory concerns, even though he does not anticipate a material effect on its price.
Aslam said: “South Korea wants to tighten the regulatory screw again by looking at some specific accounts and China wants to limit the bitcoin mining operation. But these aspects have proven only a blip for bitcoin and nothing more.”
He was also optimistic regarding a price rebound. He said: “Of course, one may say that bitcoin is a bubble, and it will burst, but the only reality about bubbles is that once they burst, they never come back again. For bitcoin, we have seen several massive price crashes over time. However, the price has bounced back up.”
The volatility of the price arrived a week before the first bitcoin futures were scheduled to expire.
The Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (Cboe) both launched bitcoin futures contracts last December., However, with the first contracts due to expire on the 17th of January, some investors are expected to be struck with steep losses.