Bitcoin, the best-known cryptocurrency, was having it’s ‘Tulip bulb’ moment as they say. The virtual currency that briefly hit $20k last Sunday, was down to about $11k at the time of writing (3 30 pm Central European Time) with no sign of stopping the apparent slide. The low of $10,800 was hit before Bitcoin bounced back to just above $11k.
Mr Jackson, partner at venture capital firm Mangrove Capital Partners: "The vast majority of long-term holders of Bitcoin are still way in the money and have shown no sign of cashing out,"
"We see the exit of short-term speculators, and we have seen it before. The fundamentals are still in place and there is no reason why the Bitcoin ecosystem should not continue to develop."
The news comes after a troublesome week Bitcoin, in which a crypto-currency exchange went bust in South Korea following a cyber attack, which already knocked its price.
Coinbase, another exchange based in the US, also said it was opening an investigation into sharp price increases and said that it would be looking into trades made by its own employees.
Mr Neil Wilson, a senior market analyst at ETX Capital, commented: “Has the bubble finally popped? It’s hard to see the bell tolling just yet. Large price swings have become so normal that it’s hard to decide – we can easily see this market bounce back in very short order.”
“Whilst there have been some hacks, public infighting in the mining community, lots of rumored 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.
“It looks like it’s time to cash in the gains and spend the winnings on a bumper Christmas.”