- Bitcoin futures were down by over 7% on Tuesday morning.
- Bitcoin is down 0.4% against the dollar, extending its recent slump.
LONDON – Bitcoin is starting the new year on the back foot, with investors betting that the digital currency has further to fall.
Bitcoin was close to a one-month low on Tuesday morning, down 0.4% to $US13,445.91 at 7.25 a.m. GMT (2.25 a.m. ET). It’s a long way off the record high of $US19,511 reached December 18 and about $US500 lower than where it was on Sunday.
The cryptocurrency has seen a sustained pullback since hitting its all-time high, and investors are betting that the slump has further to run. Bitcoin futures, which launched in early December, are down over 7%, according to Investing.com. Institutional buying activity is pricing bitcoin at $US13,355 by January 18, as the chart below illustrates:
Bitcoin’s price rocketed over 1,500% against the dollar across 2017, while the wider cryptocurrency market rose along with it. The value of all cryptocurrencies in circulation is over $US600 billion, according to the data provider CoinMarketCap.com.
Mati Greenspan, an analyst with the trading platform eToro who follows the crypto space closely, said in an email on Monday evening: “This new asset class has probably seen the quickest rise in value and market capitalisation of any asset class in any year in history. The total value of all cryptocurrencies in circulation has risen by 3,137% from January 1st to December 31st.
“The amazing thing is that the rate of acceleration has continued to increase as the year progressed. Even the massive pullback that we saw in the week leading up to Christmas seems like a tiny blip when we look at the big picture.”
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