New Delhi: The beginning of the year for the popular cryptocurrency Bitcoin is not so good as it has registered a decline of more than 40% and reached $40,000 for the first time since September last year. In early November, it was trading at an all-time high of almost $69,000 .
It is also said to be the biggest decline compare to the beginning of any year since its early days of trading. Besides, it is the largest drop ever since at least 2012, according to the media reports.
However, it recovered by as much as 6% after falling to $39,774 in the trade market of New York but the loss to the currency was recorded at 14%. As per the market experts, Bitcoin is estimated to drop further below $20,000 because Federal Reserve is reducing its liquidity injection.
On the other hand, Bloomberg Intelligence’s Mike McGlone projected that people are opting for digital medium of transaction so Bitcoin will again reach at top among other cryptocurrencies. The decline in the digital currency is more driven by short-term traders than the long-term traders.
So, the currency would come at top soon as the short-term traders does not possess long-term influence over the market’s value.
Reportedly, Bitcoin was started by Satoshi Nakamoto in 2008 and it gained momentum during the global financial crisis in the same year. However, pricing information of the coin related to its early days is very limited. Its trading was begun in 2009 for the first time.
Despite the loss, it has registered a hike of almost 500% since the end of 2019. Furthermore, the market of cryptocurrency has jumped following the arrival of COVID-19 in the world.