A few days ago, Bitcoin investors were promising the digital currency would continue to go through the roof, but it suddenly changed course.
Asian trading fell six percent in a single day and then the rot moved when people started to wake up in Europe. So far the currency is down 8.48 percent and the rot appears to have moved to other digital currencies.
Justin d’Anethan sales manager at digital asset company Diginex, said: “With very high volumes on spot but also on leveraged markets, it’s not surprising that after failing to hit the all-time highs, there would be this sort of rapid correction.”
“While a quick visit in the upper or mid-16,000s is possible, we’re still trending up and with plenty of upside potential”, he added
This year, Bitcoin has risen 358.6 percent from the year’s low of $3,850 on March 13, but has not yet breached the $19,666 hit in December 2017.
Analysts say that this latest rally differs from 2017’s as there are proportionally fewer retail investors and more institutions such as hedge funds and family offices trading cryptocurrencies.
One investor said that investing in cryptocurrencies is like playing roulette, some experts say, because no-one really understands what’s happening. Unlike stocks or bonds, where business trends or central bank decisions can affect prices, crypto values seem to be affected by flapping butterfly wings.