Bitcoin fell below $15,000 after its biggest rally in the last two weeks which ended a rout and wiped more than $9,000 off the price. The digital coin dropped by 6.3% to $14,913 In New York. It had earlier climbed by 3.6%. The rival digital currencies of bitcoin, ethereum and litecoin fell and ripple rose by 8%. The fall for bitcoin comes after a five day slump which reached 44% at its depths and took the coin below a valuation of $11,000. Last week, it rose within a striking distance of $20,000 after a torrid advance.
The investors across the world continue to snap up the shares in companies which are often seen as a safer investment as compared to investing directly in cryptocurrency itself. The share prices of various companies advanced after the slump in bitcoin. Bitcoin futures on the CME Group witnessed a slip of 3.6%. The volatility surrounding Bitcoin is adding to the debate about how to value the digital coin which has surged by 1600% in this year.
Nobody is aware of the ultimate value of this asset and nobody can predict whether it is going to be zero or reach $1 million or remain in between. The sceptics who were doubting whether businesses and individuals will start using bitcoin as a medium of exchange as opposed to the officially backed digital currency, this short-lived rebound portends further declines.
With a downward movement like this, there is a bigger and more complex correction. Analysts say it is possible that bitcoin could drop to $5,700 or $8,700 in the coming months.