The prices of Bitcoin have plunged over the days of this past week. According to the Price Index of CoinDesk, the bitcoin price fell to Rs. 9,75,000 earlier. After surging to an all- time high price of Rs. 14,83,725 on 17th December, as on CoinDesk, the bitcoin price has been stumbling since.
But later, the Bitcoin price was in a recovery mode and was stable for some time, but still down by around 8 percent. On seeing the volume of trades executed on a single day, it has touched high since 8th December and is nearly $19 billion.
According to the experts, the fluctuation of the price is because of dynamics of the market. In last one week, the prices of several cryptocurrencies have surged. For example, just a couple of days back, Coinbase’s GDAX, one of the largest cryptocurrency exchanges, has announced additional support, thereby allowing the users to trade the Bitcoin Cash on their platform. Due to this, the Bitcoin Cash prices increased along with the trading volume that was approximately $12 billion for 24- hour timeline. The world’s fourth- largest digital currency, Ripple also had trading volumes touching $4 billion.
This shows that the investors are looking to expand their portfolio and are putting their money on multiple cryptocurrencies. This might be the reason for the sharp plunge in the Bitcoin prices.
Talking to the Guardian, senior market analyst at ETX Capital, Neil Wilson says, “Whilst there have been some hacks, public infighting in the mining community, lots of rumoured forks and regulatory pressure building on some fronts, this is likely to be a simple bout of risk-off selling as investors rebalance towards year-end.”
Accordingly, the drop in prices will continue for a while. An article in Coindesk tells us that seeing the price chart analysis, the bitcoins price will continue to plunge to Rs. 8,25,000 with reversal point at Rs. 8,46,000 and then might move upward. According to some reports, YouBit, South Korean Bitcoin exchange, was looted by hackers earlier this week. It is said that almost 17% of its total assets were looted by the hackers. This is starting to create uncertainties and panic in the Bitcoin market.
Seeing the market today, only Ripple value was surging with the price increase of almost 8.55 percent. Presently, Ripple and Bitcoin Cash are fighting to get the position of the world’s third- biggest cryptocurrency. The collective market cap of Bitcoin Cash is nearly $45 billion, whereas the market capitalisation of Ripple is close to $43.4 billion.