On Friday, in its worst day of trading in over three months Bitcoin lost a third of its value as it fell below $13,000 in the last five days after climbing to a new time high on Bitstamp exchange of $19,666 on Sunday. In its worst day in over three months, it fell 15 percent and for the week it lost a third of its value.
Major test for cryptocurrencies
In a major test for cryptocurrencies bears who have cast doubt on the value of the digital currencies who claim it is the biggest speculative bubble in history will be watching the outcome of the selloff closely. As will be the bulls who say that for the world of investment and finance, the technology is a game changer.
The Governor of Denmark’s central bank called it a gamble that is ‘deadly’. The remark comes amid warnings from many financial institutions about the risks of investing in an unregulated market with volatile trading.
The CEO of Crytocompare in London, Charles Hayter said that the frenzy which has gripped the market is led by the herd and will be followed with a downturn as sentiment changes.
On Tuesday the South Korean cryptocurrency exchange, Youbit said that after it was hacked for the second time this year, they will be filing for bankruptcy and shutting down.
Investors turn to alt coins
With a lot of retail traders getting badly burned over the drop in value of Bitcoin other alternative coins has seen a substantial amount of capital flowing into them. Notably Ethereum and Ripple, whos value has soared over the past week.
The crypto markets total estimated value which was at $650 billion a day before fell to $480 billion, as other cryptocurrencies also fell alongside Bitcoin. 24option offers traders five of the most popular digital currencies, including Bitcoin CFDs on their new improved platform.
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