The volatile cryptocurrency hit a record high when it passed $19,850 in mid-December. About two weeks ago the price of bitcoin plummeted, sending shockwaves around the globe going below 12000 $. Since then bitcoin has oscillated between 12k-15K $.
Bitcoin originated as a form of digital currency which was to be used throughout the globe. However, it seems from the current situation that it is more of an asset class and the big jumps its had have made investors more cautious. Bitcoin is highly volatile and its price is expected to shift unpredictably.
The reasons why bitcoin has shifted values are various.
One of them includes HERD MENTALITY:
From the start of 2017, bitcoin's value surged to the skies this signalled the various investors to pool in their money into the unregulated currency, expecting high returns. Similarly, this concept also applies to when the value of bitcoin plummeted during mid-December. People starting withdrawing money as soon as they confronted the reality: BITCOIN IS HIGHLY VOLATILE.
Another reason why not only bitcoin but all the currencies have plummeted recently is that South Korea is planning to ban all the crypto-currencies. This move pulled down the values of the nearly all the cryptos.
Jp morgan's boss asserts that it is a fraud that will ultimately blow up. He is disgusted to the extent that he says that he will fire anyone at Jp Morgan who trades in bitcoin for as he thinks that it's against their rules and its stupid.
One thing is for sure that everybody has their eyes open about crypto-currencies and will be subject to extreme volatility.