The bitcoin currency returned to decline again during last week’s trading, in light of weak trading due to the Christmas holidays, and the bitcoin currency witnessed a decline, abandoning the $4,000 psychological support level, on its way to the next level at $3,500 to record a decline of 2.8% for the third week in a row. These continuous losses in light of the weak investment demand for the purchase of digital currencies, in addition to the scarcity of positive news supporting the digital market.
Bitcoin lost 6.5% for the fifth month in a row throughout December, marking the longest monthly loss since the end of 2011.
Bitcoin, the largest and most famous digital currency in the world, lost nearly 79% of its value. On January 5, the Bitcoin recorded a level of $19,700, reaching its price last Friday at $3,500.
Bitcoin is not alone in experiencing these losses, as all other digital currencies have suffered extensive losses throughout this year. The Ethereum coin lost about 94.6% of its value to currently trading near the level of 131.5 dollars from 1352 dollars at the beginning of this year, and the Ripple currency fell from the price of 2.12 dollars Recorded at the beginning of the year, it is currently at $0.369.
These extensive losses are due to many combined reasons, the most important of which are the strict regulatory measures taken by many countries regarding the trading of digital currencies, especially in South Korea, and the piracy and theft of digital currencies from many exchanges, in addition to the warnings that came from many central banks. around the world because of its danger to investors and its use in illegal activities.
During the last quarter of this year, the decline in digital currencies dominated amid a very difficult recovery and reversal of its upward cycle, especially in the absence of strong stimuli that increase the rates of investment demand for the purchase of digital currencies, and 2019 is supposed to witness a new stage of ascent, but this time it will be slow And gradual, unlike in 2017, because the next phase will focus on institutional activity and regulations in the world.
Galaxy Digital founder Mike Novogratz confirmed during an interview with Bloomberg last week that bitcoin is not an economic bubble as some think, and it is likely that financial institutions will be interested in entering the world of digital currencies during the next year by creating their own digital currencies, and it is expected that Bitcoin is a digital store of value.
Mike added that the state of the bitcoin obsession is not different from the internet mania in the beginning, which succeeded in changing the world in the end.
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