Bitcoin today continued its recent sharp decline, falling 2% to $9,122.73. It has now lost 20% of its value just this week.
But things could have been even worse for the world’s most valuable digital currency, as bitcoin rebounded from a low this morning of $8,370.80.
While bitcoin continues to fall, other popular cryptocurrencies have remained steady, after overcoming some morning losses. Ether was unmoved at $702.18 and Ripple had risen 3.3% after dropping as much as 10% during the day. Litecoin is also up, 2.1%, while Bitcoin Cash is down 3.2%.
Some experts attributed bitcoin’s current fall to certain technical factors. Jani Ziedins, who is a market blogger, said that if the price of bitcoin steadies within the next couple of days, he expects higher prices will soon follow. However, if the price does not steady over the next few days, he expects an ever sharper decline in the short-term, followed by a large rebound.
Others believe that bitcoin’s decline is more related to regulatory fears. They point to the statement the Securities Exchange Commission (SEC) made on Wednesday, in which it said that tighter controls were needed across all cryptocurrency exchanges. It further warned investors not only about the inherent dangers of cryptocurrencies, but also about the unregulated exchanges where they are traded.
Many industry people, though, believe that bitcoin’s decline will be short lived. Tom Lee, who is the managing partner at Fundstrat Global Advisors, issued a research note in which he said that the decline was specifically due to the recent Mt. Gox liquidation. He further said that he expects that cryptocurrency investors will reenter the market once the liquidation was complete.
Bitcoin futures were also trading lower today. The March contract at the CME Group Inc. was trading at $9,140, down 2.8%. At the same time, the March contract at the Cboe Global Markets was trading at $9,130, down 3.3%.