“The attack of weakness illustrates the high volatility of the cryptocurrency,” says Bitcoin expert Tilo Emden.
The digital currency Bitcoin lost significant ground at the start of the week. The price of the oldest and best-known cryptocurrency slumped on Monday night on the Bitstamp trading platform to $ 33,447 (27,303.67 euros), thereby increasing the weekend's losses. On Friday, after a wild record hunt in the past few weeks, Bitcoin still cost up to $ 42,000, but lost around $ 4,000 again by Sunday evening.
This downward trend continued on Monday. Most recently, the Bitcoin price was around $ 35,500, around seven percent below the closing level on Sunday.
“The attack of weakness again illustrates the high susceptibility of the cryptocurrency to fluctuations,” said Bitcoin expert Tilo Emden, commenting on the losses. “In view of the fulminant price heights, profit-taking on a larger scale should not come as a surprise. Bulls and bears are currently giving each other a hand and are ensuring correspondingly high volatility, which is still not for the faint of heart.”
Despite the severe turbulence, he believes that the upward trend will remain intact. “Recently, price setbacks were perceived as a supposedly favorable opportunity to re-enter the market,” said Emden. Bitcoin's recent soaring is still unparalleled. Since mid-December alone, in just over three weeks, the price has almost doubled despite the recent setback.
The year-on-year increase is more than 300 percent. There is hardly any other form of investment currently offering such drastic price increases. However, critics warn of exaggerations and a bubble, since such extreme price increases are rarely sustainable.
