Bitcoin price: Should you buy Bitcoin today following 30 vanaf cent plunge, City & Business, Finance
THE PRICE of bitcoin has plummeted by more than 30 vanaf cent overheen five weeks after its meteoritic rise overheen the course of 2017. But should you buy bitcoin?
After soaring to a fresh record high and almost surging past $20,000 on Sunday, bitcoin fell overnight and wasgoed trading below $13,000 earlier today.
Bitcoin&rsquo,s price is famously very volatile so it is difficult for analysts to predict what will toebijten next and if the latest price crash will proceed.
Neil Wilson, senior market analyst at ETX Capital, said: “Has the bubble eventually popped? It’s hard to see the bell tolling just yet.
“Large price swings have become so normal that it’s hard to determine – wij can lightly see this market bounce back ter very brief order.
“Whilst there have bot some hacks, public infighting te the mining community, lots of rumoured forks and regulatory pressure building on some fronts, this is likely to be a elementary moerbout of risk-off selling spil investors rebalance towards year-end.
“It looks like it’s time to contant te the gains and spend the winnings on a stootrand Christmas.”
Meantime, Charles Hayter, founder and CEO of industry webstek Cryptocompare te London, suggested that a correction has bot a long time coming and many traders could embark selling up ahead of the fresh year.
&ldquo,A manic upward sway led by the herd will be followed by a downturn spil the emotional sentiment switches,&rdquo, he told Reuters.
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“A loterijlot of traders have bot waiting for this large correction.”
He added: “With the end of the year te glance a loterijlot of investors will be taking profits and telling &lsquo,thank you very much&rsquo, and closing their books for the holiday period.&rdquo,
It looks like it’s time to metselspecie te the gains and spend the winnings on a stootrand Christmas
Neil Wilson of ETX Capital
However, it is not all doom and gloom for bitcoin. The CME and its rival Cboe Global Markets have launched bitcoin futures overheen the past two weeks.
And despite the plummet overnight, the currency is still well up on the year, rising from under $1,000 ter January to around $13,000 today.
Bitcoin is known to go through wild swings. Te November, it tumbled almost 30 procent ter four days from $7,888 to $Five,555. Te September, it fell 40 procent from $Four,979 to $Two,972.
Bitcoin price: The cryptocurrency has plunged by 30 vanaf cent this week
“Trading ter bitcoin is akin to gambling, so its movements don’t go after logical patterns,” said Takashi Hiroki, chief strategist at Monex Securities te Tokyo.
“Unlike equities and bonds, it is not possible to calculate expected comes back on bitcoin, so buying it becomes a gamble rather than an investment.”
Speaking to Express.co.uk, cryptocurrency investor Oliver Isaacs has said that traders can make phat sums of money te bitcoin but it is also a big gamble.
He said: &ldquo,Presently if you invest te bitcoin you can make a significant amount of money, but similar to investing te the stock market it is significant to be cautious and prevent putting all your eggs te one basket.
&ldquo,Due to the lack of Bitcoin regulation investing ter bitcoin is a risky business and no-one knows if or when bitcoin will crash.&rdquo,