Reprieve in sight for cryptocurrencies?
Cheah Chor Sooi | 30 Nov 2018 00:30
The recent bitcoin crash is not entirely surprising given this is the time of the year when cryptocurrencies are most vulnerable to a downside movement.
Recall how volatility is synonymous with the cryptocurrency market when bitcoin skyrocketed to peak at US$19,783 (RM82,990) on Dec 17 last year before nosediving 50% within a month.
Back then, the bubble was triggered by a global tide of regulations against the inchoate cryptocurrency industry.
To be sure, bitcoin has, prior to the recent debacle, endured multiple crashes: in spring 2011, November 2013, January 2017 and December 2017/January 2018. Coincidence or otherwise, the three most recent crashes have occurred near year-end and the beginning of the following year.
In the latest episode, bitcoin plunged over the Thanksgiving (Nov 22) weekend – even after having encountered stability above the US$6,000 mark since July 1 – dragging the wider cryptocurrency market down with it.
According to CoinDesk’s bitcoin price tracker, the largest blockchain network dipped to a low of US$3,530.72 on Nov 27 after failing to stay above the psychological US$4,000 mark.
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