Bitcoin has experienced a remarkable price resurgence in recent months, rising close to a record all-time high after more than two years of plummeting prices.
The latest rally of the notoriously volatile cryptocurrency comes amid a flurry of institutional investment news, which has taken btc close to the peak it reached in December 2017 of $20,052 (£15,025).
Other major cryptocurrencies – including Ethereum (ether), Ripple (XRP) and bitcoin cash – are also climbing in value, though remain a long way off their record highs. A flash crash saw an expected market cool off, though some analysts still predict positive movement leading up to Christmas.
Follow all the latest news, analysis and expert price predictions here.
Calm after the storm
The price of bitcoin appears to have plateaued, at least for now. The cryptocurrency has been hovering around the $17,000 mark since its stunning crash 24 hours ago.
Other major cryptocurrencies – including Ethereum (ether), Ripple (XRP) and bitcoin cash – have largely mirrored bitcoin’s fortunes, leaving the markets relatively calm this morning.
Anthony Cuthbertson27 November 2020 08:48
The outbreak of the coronavirus pandemic proved to be a critical test for this theory, as geopolitical uncertainty and economic instability saw investors look towards safe haven assets.
Gold has seen its price rise steadily throughout the year, though its performance compared to bitcoin is relatively unremarkable. Even with today’s price crash, the world’s most valuable cryptocurrency is worth more than double its value in March.
We’ve put together this chart to illustrate the fortunes of gold and “digital gold”.
Anthony Cuthbertson26 November 2020 16:32
We’ve been reaching out to various market analysts and cryptocurrency experts to hear their thoughts on the latest sell-off.
Here’s a selection of the best takes on the market crash:
‘A welcome cooling off’
‘A new bitcoin all-time high still probable before end of the month’
‘Volatility driven by derivative market’
Anthony Cuthbertson26 November 2020 14:38
The crash in context
Bitcoin has rebounded slightly and is currently hovering around $17,000. Some advocates are calling it an early Black Friday sale, encouraging people to buy while the price is low. However it is still too early to tell if this is part of a longer downward trend or if it was just a flash crash prompted by sell-offs from investors as the cryptocurrency approached its all-time high.
More than $2,000 of losses in a couple of hours is big but not unprecedented for the notoriously volatile asset. Putting it in a broader context, bitcoin is still way up from one year ago, and even one month ago.
Anthony Cuthbertson26 November 2020 12:07
What goes up…
The price of bitcoin has crashed spectacularly overnight, dropping more than 12 per cent to below $17,000.
Some analysts had predicted significant market drops before reaching the record high due to investors selling off at the landmark price point approaches.
“Bitcoin’s price history suggests taking a precautionary approach,” Konstantin Anissimov, executive director at London-based cryptocurrency exchange CEX.IO. told The Independent this week.
“During the last bull run, 30 to 40 per cent corrections were the norm. Each time prices rose to new highs, a steep correction followed.”
Anthony Cuthbertson26 November 2020 08:54
Teasing all-time high
Bitcoin price is up by around 1 per cent over the last 24 hours.
These modest gains add to the substantial 9 per cent rally over the last week and the remarkable 50 per cent price rise it has experienced since last month.
At just over $19,000, bitcoin is nearly four-times what it was in March.
Anthony Cuthbertson25 November 2020 14:31
Welcome to The Independent’s bitcoin live blog.
We’ll be bringing you all the latest news and analysis from the world of cryptocurrency, as well as price updates from all the major altcoins.
Anthony Cuthbertson25 November 2020 13:33