After the stratospheric rise in value, Bitcoin – once hailed virtual gold – is experiencing a slide of late. Will it continue to fall further or is there a comeback on the cards?
The largest crypto currency by market capitalization, Bitcoin is struggling to hold above $15,000 in the last few days. The digital currency fell more than 10 percent to trade at $14,847, at the time of writing, according to the coinmarketcap website.
2017 was a breakthrough year for Bitcoin. Since the start of the year, it has seen astounding gains. From less than $1000 per coin at the beginning of the year, it rocketed to $19,535 on December 16, which is an equivalent of 12 lakh INR.
On December 22, Bitcoin hit a low of $10,400 – losing nearly half of its value since it hit the record high of nearly $20,000. The crypto recovered soon, reaching around $15,000 mark in a couple of day’s time. This collapse in the value has come despite the launch of Bitcoin futures at Cobe and CME, which is seen as a step towards legitimizing Bitcoin as an asset class for institutional investors.
Read: Is Bitcoin a bubble?
Bitcoin contributes more than 43 percent to the crypto market which is estimated to be $546 billion. According to the information on the coinmarketcap website, the digital currency has a market cap of $239 billion. Though it is still the largest crypto currency among 1374 players, the latest trend suggest a drop in market share over time.
At the start of the year, the crypto commanded more than 90 percent share of the cryptocurrency market, according to data from CoinMarketCap.com. The hold of it took a tumble in March, but regained as Bitcoin soared to unbelievable new highs.
The market dominance of BTC started to slide down as Bitcoin’s value fell after hitting a record high and reached a low of 42 percent on Monday, December 25.
Read: Should you buy Bitcoin?
For Bitcoin to shrug off everything and become the force it was, not so long ago, a lot depends on the crypto currency’s performance at regulated exchanges and derivatives trading. With the mainstreaming, the institutional investors might be more interested and which in turn, can infuse new life into Bitcoin.
Bitcoin’s significant ascend has garnered a lot of attention. However, institutional investors, regulators and corporations are still at a distance observing blockchain technology. Whether Bitcoin becomes ballistic or break down depends largely on how the mainstream players make their moves.