Bitcoin ‘Pauses to Refresh’ After Running Up 55% in November
Bitcoin was last down around 6.72% at $9,69.1934 on the Luxembourg-based Bitstamp exchange, from a record high of $11,395 set Wednesday.
Thursday, it went as low as $9,000.
The latest profit taking pullback is a ‘Pause to Refresh’ after a 54.7% rise in November, its best monthly performance since a near 66% gainer in August.
Bitcoin had risen almost 1,100% Wednesday. Early Friday it is up around 915% YTD.
One wealth manager said technical chart analysis was predicting deeper falls.
Trading speculation is driving prices in here. So, traders use technical indicators to make buy and sell decisions.
The cryptocurrency has posted monthly losses only 3Xs in Y 2017.
Bitcoin’s rise has been fueled by signs that the digital currency is slowly gaining traction in the mainstream investment world, as well as by increasing public awareness.
Several large market exchanges including Nasdaq, CBOEHoldings and CME Group, the world’s largest derivativesexchange said they are planning to provide futures-contracts based on Bitcoin.
Bitcoin investments are seen as mere speculation because demand has skyrocketed without fundamentals backing the cryptocurrency, said a Seoul, Korea based economist.
“There are people who invest in bitcoin for its future value, but most seem to be just jumping on the bandwagon, without being fully aware of the structure or how it will replace actual currencies in the future,” he said.
The number of Bitcoins that can be mined is limited to 21-M, of which 16.5-M Bitcoins are already in circulation, about 15.9-M are held by investors in China and SKorea.
As Bitcoin mining becomes increasingly difficult and trading in China and SKorea restricted, this supply/demand issue drive Bitcoin prices North.
Have a terrific week.
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