Bitcoin gained $3,810 in 5 days to record high, loses double at $6,560 in next 5

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Updated: December 22, 2017 12:38:13 PM

So, the loss is more than three times the gains Bitcoin observed in the same time period.

bitcoin, bitcoin blockchain, blockchain wallet, how can i use blockchain wallet, where can i use blockchain walletCustomers who had bitcoin in their Blockchain wallets prior to August 1 will automatically see an equal amount of Bitcoin Cash reflected in their accounts, the company said. (Reuters)

Bitcoin shot above $19,000 for the first time on December 17, registering an all-time high this year on Coinbase Inc. Thereafter, the popular cryptocurrency sharply plunged from the record high. In trading on the Coinbase exchange, the digital currency dropped to as low as $13,250 before trading at $14,450 at 11:30 PM today on Coinbase Inc. Bitcoin that has peaked at $19,810 on Sunday. Considering the volatility in price that Bitcoin has exhibited inside the last fortnight, we can easily make out the inherent risk associated with trading of the popular cryptocurrency.

Sharp fall

On the Coinbase Bitcoin Price Index, Bitcoin reached a high of $19,810 on December 17. It took Bitcoin just 5  days to reach back to the $13,000-mark. Bitcoin reached a low of $13,250 today losing about $6560 in value. It amounts to a loss of nearly 34 percent in Bitcoin’s price in this time period.

Sharp rise

Going back by exactly 5 days to December 12, we observe Bitcoin was trading at $16,600. The difference in the two trading values comes at $3,810. So, the Bitcoin price rose by 16 percent till December 17, the day when the cryptocurrency reached it record-high.

So, the loss is more than three times the gains Bitcoin observed in the same time period.

Investors are having a “reality check,” said Stephen Innes, head of trading for the Asia Pacific at Oanda Corp. “At the heart of the matter was a frenzied demand for coins with limited supply has now led to unsophisticated investors holding the bag at the top.” Bitcoin’s drop comes amid concern that an offshoot is becoming a stronger rival to the more well-known cryptocurrency. Bitcoin cash, which emerged earlier this year amid a split between factions over proposed software upgrades, was added to Coinbase Inc.’s offerings this week. There are growing signs of mania for anything cryptocurrency related. Long Island Iced Tea Corp. shares rose as much as 289 percent after the unprofitable Hicksville, New York-based company rebranded itself Long Blockchain Corp. Bank of Japan Governor Haruhiko Kuroda said on Thursday bitcoin isn’t functioning like a normal means of payment and is being used for speculation. Banks are also sensing opportunity. Goldman Sachs Group Inc. is setting up a trading desk to make markets in digital currencies such as bitcoin, according to people with knowledge of the strategy. The bank aims to get the business running by the end of June, if not earlier, two of the people said.

With inputs from Bloomberg

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