Bitcoin jumped 11%, the best single-day performance since the end of November
Bitcoin recovered slightly to $3,400 on Monday after weeks of sharp decline, CNBC reported.
Cryptocurrency has plummeted more than 80% from its all-time high a year ago. According to CoinMarketCap.com, the Bitcoin price topped $19,475 on December 17, 2017. Since then, Bitcoin has plummeted.
According to data from industry data website CoinDesk, Monday's trend was the best single-day performance since the last week of November. The cryptocurrency rose 11% to a high of $3,437.57, but it fell more than 50% over the past three months.
Mati Greenspan, senior market analyst at eToro, said: “As a relatively new concept, cryptographic algorithms are still finding their place in terms of value.” “It's important to remember that in every market, all assets go through a price discovery process, and cryptocurrencies are no exception.
Since peaking last year, the overall cryptocurrency market capitalization has declined by more than 80%. According to CoinMarketCap's data, the total value of the cryptocurrency market fell from $592 billion in December 2017 to around $109 billion this week.
Despite this, the industry has continued to grow rapidly since its inception 10 years ago, and the $3,400 level is well above the price of 1 cent when Bitcoin first began trading. If you analyze Bitcoin's performance last year, you'll find that last year's Bitcoin boom was mainly driven by a flock of retail investors.
According to CoinDesk data, Bitcoin started below $1,000 last year, and as of December to nearly $20,000, its total earnings reached 1,300%. This has ushered in a new era of cryptocurrency millionaires, and in many cases, these beneficiaries are tweeting about their super-high earnings and newly bought Lamborghinis.
This crazy growth has also aroused the interest of some institutions. Fidelity announced a cryptocurrency escrow solution this year, and NASDAQ and ICE, the parent company of the NYSE, are both planning to launch Bitcoin futures in 2019.
“Since its inception 10 years ago, Bitcoin has experienced four retracements similar to what we've seen over the past year,” Greenspan said. “Bitcoin will discover its original value; it's only a matter of time.”
In previous industry-related news, the US Securities and Exchange Commission (SEC) announced an approval process for proposed rule changes relating to Bitcoin exchange-traded fund (ETF) subsidies.
An ETF is a financial product that tracks the price of an asset and is listed on an exchange. This means investors don't actually have to buy assets. ETFs are seen as a way for institutional investors to enter cryptocurrency investments, which is safer than buying Bitcoin on a crypto asset exchange.
The ETF in question is the VanEck SolidX Bitcoin Trust, made up of money management company Vaneck and blockchain company SolidX. This is Vaneck's third attempt at creating a Bitcoin ETF. In an updated filing, the US Securities and Exchange Commission said its decision was postponed until February 29, 2018.
Eduardo A. Aleman, Assistant Secretary of the US Securities and Exchange Commission, said, “The Commission believes it is appropriate to specify a longer period of time to approve or disapprove the proposed rule change, so that it has sufficient time to consider whether this proposed rule change is appropriate.”
Source: Tencent Securities
