After the euphoria that lasted a few weeks, the price of bitcoin continues to plummet drastically and is likely to fall further, according to analysts tracking the crypto-currency market. The analysts feel that it is likely to consolidate at $7,000-8,000 level in the next few weeks.
Bitcoin, which touched a high of $19,000 two weeks ago, is trading at $12,000 level at present, but keeps fluctuating. In India too, where bitcoins were being traded 14-15 per cent higher, the prices have come at par with global prices.
Sanjay Mehta, an angel investor and also an investor in different kinds of crypto-currencies, had told
Another crytocurrency expert Kunal Nandwani said that one explanation, apart from the euphoria, is the interest flowing from institutional investors, who want to enter this market through futures in the US. “They (institutional investors) are using futures in the US market to bring the value down so that they can invest at a low price,” Nandwani said. Nandwani, however, added that the correction might be a short-term blip and bitcoin’s price would go up to $25,000 by March next year.
Bitcoin’s spot price was trading at $14,462 on Friday, down 7 per cent, according to CoinDesk, which tracks crypto-currency exchanges Bitstamp, Coinbase, itBit and Bitfinex. It has risen more than 1,300 per cent since the beginning of the year.
Praveen Kumar, Founder of Singapore-based crypto-currency exchange Belfrics, said that despite the price crash, people are still holding on to their investments.
He also added that countries, such as China and India, putting bitcoin trading under scanner also had added to the poor sentiment.