AFP / Justin TALLIS
Bitcoin has soared more than 50 percent in just a week and is up from a low of $ 752 in mid-January
Bitcoin plunged as much as 15 percent to below $ 14,500 on profit-taking Friday, capping a roller-coaster week that saw the currency hit a record highs and underlining about its volatility. The virtual currency, which has a new record of $ 17,000 before plunging to $ 14,480 in Asian afternoon trade, according to Bloomberg News.
It is expected to be $ 16,100 in later trading. Created in 2009, the digital money has been used to make pizza, and is more widely accepted by Expedia. It has soared more than 50 percent in just a week and is up from a low of $ 752 in mid-January. Analysts have made the decision to change their position in the market. But some, including the US Federal Reserve, have been warned against dabbling in Bitcoin and it has increased. Chicago Mercantile Exchange (CME) on December 18. – ‘Hiccup’ fears – However, major derivatives brokers have had a greater influence on the market than they have in the past. “If there are any kind of hiccups, we can easily see a scenario where it falls back by 50 percent,” Kay Van-Petersen, macro and crypto strategist with Saxo Bank in Singapore, told AFP. But he still expected the currency to keep rising in the long term, predicting its value would hit $ 50,000 to $ 100,000 within 18 months. The nascent Bitcoin industry was meanwhile coming under pressure due to the sudden surge of attention. Major US online coin exchange Coinbase crashed; Trezor wallet service, which stores Bitcoins, reported issues with its servers; while leading exchange Bitfinex said it had been hit by a cyberattack. Worries about the digital currency’s vulnerabilities to the face of the marketplace, which has been investigated by Bitcoin. Bitcoin transactions happen when heavily encrypted codes are passed across a computer network. Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers. – Bloomberg News contributed to this report –
AFP / Justin TALLIS