Disappointing day for cryptocurrency traders as Bitcoin slips 15%

NEW DELHI: The last weekend before the festive season proved to be a dampener for virtual currency investors and traders as bitcoin slumped by 15 per cent. Bitcoin tumbled below $14,000 briefly on the Bitstamp exchange on Friday, down roughly 30 per cent from its record top near $20,000 set at the start of the week.

Overall, bitcoin has seen several notable price drops following Sunday's gains, including a dip below $17,000 on Tuesday that accounted for a roughly $1,800 drop on the day.

Analysts believe that the volatility in the bitcoin valuation has set in on the back of competition from other cryptocurrencies. A number of virtual currency like Litecoin,

Ethereum

,

Verge

and Ripple have come to the fore, offering the investors a range of options. Consequently, bitcoin is facing resistance after it saw unprecedented buoyancy.

The choppy nature of bitcoin trading also attributes to the fact that unlike equities and bonds, it is not possible to calculate expected returns on bitcoin. The regulatory bodies have repeatedly warned about this facet of cryptocurrencies and their stand seems to be vindicated.


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