Cryptocurrency Bitcoin bounced back up to $16,000 on Tuesday after falling below $12,000 on the run-up to Christmas.
In the run-up to Christmas on Friday Bitcoin fell to $11,159.93, losing over a quarter of its value in a single day of trading, a fall of 30 percent.
Since the start of the year Bitcoin has risen twentyfold from $1,000 to a high of $19,666 and on some exchanges souring to $20,000 on 17th December.
The volatility in trading has led some bitcoin investors to believe that it is a natural correction in its value, however market regulators and some banks have issued further warnings.
Risks of a Fall is High
Last week there was a warning from Singapore Central Bank who said that they considered cryptocurrency investment a risk as it is driven by speculation.
Co-founder of Singapore COSS, Andrei Popescu said that with the current valuation there is no right current price and that in this market you don’t have to be right. Buying into a long term project or taking a profit is right, one just has to be less wrong than the rest.
Israel Proposes a Ban
On Monday, Israeli Securities Authority chairman, Shmuel Hauser said that he is looking to ban companies by imposing regulations on digital currencies including bitcoin from trading on the Tel Aviv Stock Exchange.
The second biggest cryptocurrency by market size, Ethereum also recovered from last week’s fall, posting gains from $689 on Sunday to $771.
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