The Fall of Crypto Currency, Bitcoin Rebound after Sliding Under $ 9,500
NEW YORK (Reuters) - The price of the bitcoinrebound digital currency on Thursday after falling below $ 9,500 on Wednesday in crippling selling sparked by fears of tough measures.
Bitcoin was trading at $ 11,228 at 17.03 GMT on the Bitfinex exchange, up 9.13% from the previous close.
Prices fell as low as $ 9,231.0 on Wednesday, the weakest level since Nov. 30 tumbling more than 50% from the December 17 peak of $ 19,891 on Bitfinex and more than $ 20,000 in other bourses.
Bitcoin, known for its sharp movements, tends to rebound quickly and pullback.
At current prices, bitcoin has a market capitalization of about $ 192 billion after about $ 30 billion is removed from its market value due to falling prices.
The crypto currency has been experiencing a volatile start until 2018 after a massive rally last year due to fears of increased regulatory oversight that hit the market. Ethereum, the world's second largest crypto buck by market share, was last at $ 998.29 on Bitfinex, up from Wednesday's low of $ 770.10.
The XRP ripple coins traded at $ 1.4 on the Poloniex exchange, after falling about 25% on Wednesday before recovering. Policymakers in South Korea once again indicated on Thursday that they are considering shutting down crypto currency exchanges. This country is one of the largest markets for major coins such as bitcoin and ethereum.
Crypto money trading in South Korea is highly speculative and these digital currencies are often traded at a premium price, which means that their prices are much higher in the country's exchanges than anywhere else in the world.
Analysts at Capital Economics said on Thursday that recent downside bitcoin prices "indicate that the bubble burst" even though the price is still ten times higher than the previous year, still has a long long way to fall. In a research note, analysts say the price spike is not driven by a strategic worldview, but rather a simple belief that the value of prices will continue to rise.
"Most people buy bitcoin, not because of their future confidence as a global currency, but because they expect that value to rise," the note said.
"Thus, it has all the advantages of a classic speculative bubble, which we expect to explode, and if it really explodes anyone's guess and the price can not go up again, before they fall further ahead," they added.
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