The price of cryptocurrencies usually fluctuates wildly, and more quickly than physical currencies. The plunge on Tuesday morning is extreme even for this type of market. This plunge hit all of the major cryptocurrencies including Bitcoin. This is not happening for the first time. Bitcoin has gone through several crashes in the past: spring 2011, fall 2013 and another crash about this same time last year.
After hitting a record of more than $19,850 in December 2017, Bitcoin’s value went down to $12,000 within a couple of days. Other currencies, such as Ethereum, Ripple, and Litecoin have seen double-digit losses compared to their highest values from last year. This happened because of fears that trading could be banned in South Korea, after trade bans in other countries such as China. France and Germany are also planning on making a proposal on the regulation of Bitcoin and they aren’t the only countries with hopes of imposing some kind of regulations on the cryptocurrency market. So, it’s mainly been regulatory issues which are haunting cryptocurrencies, including Bitcoin.
Cryptocurrencies prices are expected to continue to fluctuate unpredictably (as they did in the past), so some consider this plunge nothing to worry about. This pullback is nothing that the market hadn’t experienced so far. After a crash in 2014, Bitcoin recovered to new heights in 2017. It’s a volatile currency and it’s inevitable to see it’s prices going up and down.
Opinions on a long-term cryptocurrency rebound are not unanimous. Some analysts say that the Bitcoin (as well as other valuable cryptocurrencies, such as Ethereum and Ripple XRP a) will most likely reach previous highs but it could take a while. Others predict that Bitcoin will reach a price of $100,000 by the end of 2018. Most agree that the cryptocurrency is not dead and that it will continue to recover. Right now, Bitcoin is continuing its return upwards. It’s now up 10% more than it was two days ago which is higher than some expected.
Remember that the change in price, whether it is in your interest or not, is the risk involved and necessary in having cryptocurrencies such as Bitcoin.