Why is Bitcoin Price Falling? The question arises as the digital currency eroded more-than $ 2000 in last 12 hours, losing 25% from record highs reached above $ 19,800 levels.
22 December, Swissquote – Bitcoin, the world’s largest cryptocurrency stalled its downward spiral just ahead of the $ 13000 mark, as the bears take a breather after the massive sell-off. But why is Bitcoin Price Falling?
Why is Bitcoin Price Falling?
It’s retracement time for Bitcoin: investors are taking profits, pushing the price back to around $13,000. For cryptocurrencies, this is normal, i.e. boom and bust. We do not see this as a bubble bursting – it is a healthy correction.
Meanwhile, crypto competition is heating up, especially between coins that aim to be a store of value or a means of payment. Lately, Litecoin is gaining momentum and so is Raiblocks. There will be more than one winner, and we believe cryptos will be very profitable in 2018.
Euro ignores Catalonian confusion
Who won yesterday’s election – the Catalexit crowd or the Remain-in-Spain supporters? It’s not clear! Both sides are claiming victory, and the parliament is split. Separatist parties took 70 of the 135 seats, but the pro-Spain Citizens Party won the most seats, 36. So the wrangling looks likely to continue.
Amidst all this, the Euro yawned. EUR/USD is stable, as traders are pricing in the least disruptive outcome.
Please note this will be the last report until January 8th, 2018. Have a happy holiday season.
This article ‘ Why is Bitcoin Price Falling? ‘ was written by Peter Rosenstreich and Yann Quelenn, Market Analysts at Swissquote.
While every effort has been made to ensure that the data quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein.
This document does not constitute a recommendation to sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investments.