Bitcoin has extended the selloff in Tuesday’s trade after a sharp decline in the earlier session, amid concerns over the future of digital currencies after the new regulations from the Chinese government. The price of bitcoin has dropped sharply in the early trading session on Tuesday. However, its price gains some momentum in the afternoon session and currently trading just below the $15,000 mark.
Although bitcoin declined in the last two trading session, it is still showing strong improvement compared to the level it has seen two weeks ago. Its price declined 4% in the last thirty days, but the price is up 1,545% in the last twelve months.
Bitcoin has touched the highest level of $19,850 in mid-December but declined sharply in the next few days to the level of $12,000.
Bitcoin has made big swings in the last couple of weeks on the back of mixed reports. The latest volatility in bitcoin prices was the result of strict policies from the Chinese government. According to Reuters and Bloomberg, China seeks to reduce electricity supply to bitcoin miners. China, which is a home for several miners, decided to impose hard regulations on bitcoin and other miners through, taxation, electricity pricing environmental regulations and property laws.
Moreover, comments from JP Morgan (NYSE:JPM) analysts have also impacted bitcoin prices and traders sentiments. JPMorgan Chase CEO, Jamie Dimon, said bitcoin was a ‘fraud’.
Furthermore, the decline in bitcoin’s price over the last two sessions was also supported by CoinMarketCap, which lists cryptocurrencies prices and valuations. The CoinMarketCap has removed data from South Korean exchanges, as the site has witnessed discrepancies from global prices at exchanges in South Korea.
Several analysts and market pundits are showing their concerns over the sudden rise in bitcoin value and they expect this bubble to burst anytime in the days to come. On the other hand, the SEC has suggested investors to “exercise caution” and be wary of scammers. Nevertheless, some investors have a positive view of the future fundamentals of bitcoin. For instance, Eric Lonergan, a macro fund manager at M&G, said big banks will jump on the bitcoin bandwagon and adopt digital currencies like Ripple and ethereum.
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