Bitcoin took a hit, plunging 25% as well to around 13,000 USD/BTC, a 34% fall from its December 17 peak of US$20,000. Ether, the native cryptocurrency of the Ethereum network, dropped 20% to US$690, while Bitcoin Cash fell nearly 45% from yesterday’s price of about US$3,700.
According to Iqbal Gandham, the UK managing director of eToro, a European social trading and multi-asset brokerage firm, the fall was mainly driven by investors converting their cryptocurrencies into fiat ahead of the holiday break after making significant returns across the year.
Big falls in the price of bitcoin are inevitable, as are steep rises,” Gandham said. “Whilst this drop will feel dramatic, it’s only brought us back to the price of Bitcoin in November. A month is a long time in cryptocurrencies.”
Despite the sharp drop, 98% of investors on the eToro platform retain a BUY sentiment towards bitcoin, he said.
Gandham advised:
“Bitcoin and other cryptocurrencies are best held as a long-term investment. Trying to optimize the bumpy road by buying and selling each trough and peak is lucrative but highly risky.
“Instead you should take your own view on the future potential of blockchain technology and its different applications, and make your investment decisions from there.”
The price fall came after a troubled week for cryptocurrencies in which an exchange went bust in South Korea following a cyberattack. South Korean exchange Youbit said on Tuesday it was shutting down and filing for bankruptcy after being hacked for the second time this year.
In April, nearly 4,000 bitcoins were stolen from Youbit that South Korea’s spy agency linked to North Korea. This week’s hack caused a loss worth 17% of the exchange’s total assets, according to Reuters. Youbit did not elaborate on the amount but said all customers’ cryptocurrency assets will be marked down to 75% of its value, adding it had stopped trading and will work to minimize customer losses.
Meanwhile in the US, Coinbase said on Wednesday that it would investigate accusations of insider trader, following a sharp increase in the price of bitcoin cash hours before it announced support for it.
What the Pros are saying:
This is a good time to step away from screens.
Decorate your Merkle Tree
Water your bloom filters
Celebrate Cryptmas with your family.It will all be waiting here next week.
Happy Everything!
— Andreas M. Antonopoulos (@aantonop) December 22, 2017
“There is nothing new under the sun” – Same thing happens every year (https://t.co/qaNwMLJH3k) pic.twitter.com/sJQqGLb2wp
— Charlie Shrem (@CharlieShrem) December 22, 2017
#cryptonoobs & #FOMOHolders today 😂 Stop worrying and cost average down. It will all be ok.. look AWAY from the phone 📲 pic.twitter.com/xFaopW1wWv
— The Digital Currency Advisor (@AltcoinAdvisory) December 22, 2017
If you haven’t figured it out yet.. when all the Ads on Facebook, google and the media is reporting about #cryptos making millionaires, and it going to 100,000 there’s going to be a sell off. When media is reporting it’s a bad investment it’s time to buy
— The Digital Currency Advisor (@AltcoinAdvisory) December 22, 2017
The big investors make $$ off of the smaller investor’s emotion. They are buying while you’re selling. If you believe in #blockchains ability to revolutionize industries don’t act off of emotion. #HODL and #buythedip #CryptocurrencyNews
— The Digital Currency Advisor (@AltcoinAdvisory) December 22, 2017
