The value of Bitcoin and other digital currencies fell on November 25, triggering scenarios about the duration of the boom. encryption. In particular, Bitcoin has fallen by up to 8,7% since the beginning of August, while other digital currencies such as Ethereum also fell.
Analysts said profitability after the recent rally and speculation about stricter regulations were among the reasons for the decline. Even with the downturn, Bitcoin has doubled this year. Bitcoin fell 7% at 8:01 a.m. in London at $ 17.555, while Ethereum fell more than 10%, reaching around $ 514.
Concerns about the possibility of stricter regulations on cryptocurrencies in USA, as well as earnings, help explain the fall in prices seen in most major digital currencies yesterday, said Ryan Rabaglia, head of global trading at OSL brokerage of Hong Kong.
Proponents of digital currencies say the current focus on cryptocurrencies compared to three years ago is different due to growing institutional interest, for example from Companies "Fidelity Investments" and "JPMorgan Chase & Co ”.
In addition, this week, Van Eck Associates Corp. released a portfolio exchange Bitcoin at stock exchange Deutsche Boerse Xetra. Also, the PayPal Holdings Inc.. stated in October that it would allow customers its to have access in cryptocurrencies.
There is also a rumor around Ethereum, the most actively used blockchain in the world, set up for a network upgrade that would allow it to process a similar number of transactions with Mastercard Inc. and Visa Inc. The move to the new system could limit the total offer of Ethereum, whose price has quadrupled this year.
Vijay Ayyar, head of business development at Luno Singapore, said he expects Bitcoin to stabilize and reach all-time highs. However, he added that this will be followed by a bigger drop in cryptocurrency.