Bitcoin Threatens to Drop Below $12,000


Yesterday evening, Bitcoin dropped to an almost four-week low, threatening to fall under the $12,000 (£8,900) mark for the first time since the 5th of December.

However, despite making huge gains during the past three months of this year and soaring to all-time highs in the middle of December, savvy investors of Bitcoin made their highest monthly gains much earlier in the year.

As many people in Britain concentrated on the General Election, the month of May delivered the best returns. According to Coindesk, prices of Bitcoin increased by nearly 73 percent during the month, from $1,348 to $2,330. The second best month was August, with the cryptocurrency registering an increase of almost 66 percent.

Yesterday, Bitcoin dropped to $12,189 shortly before 5 pm. According to Coindesk, however, it has recovered today and rose by over $1,000 during the last few hours to $13,321.

Mid-December witnessed bitcoin hit highs nearing to $20,000 if the notably volatile cryptocurrency had held onto such gains, the final month of 2017 would have delivered the best returns.

However, the opening of bitcoin futures trading, first on the Cboe futures exchange and then on the CME, the largest futures exchange in the world, has seen prices drop away as we approach the coming year. This week, long investors suffered a fresh blow when South Korea revealed a crackdown on cryptocurrencies.

Despite the sell-off during the second half of December, prices of bitcoin have delivered enormous returns for anyone to have invested at the beginning of the year, delivering returns approaching to 1,300 percent.