SINGAPORE / TOKYO / NEW YORK: Bitcoin rose 15% on Tuesday, recooping about half of the losses sustained last week, its worst since 2013, as investors who had missed out on earlier rallies best-known digital currency.
Whilst bitcoin investors and analysts believe in the market for the first time, stage on Friday to US $ 11,159.93 (RM45,605) At 3:09 pm (2009 GMT) on Tuesday, bitcoin was up 15% at US $ 16,030 (RM65,506) in light trading on the Luxembourg-based Bitstamp exchange.
“The latest price move shows the bitcoin is still a speculative investment.” There is a huge amount of volatility there, “said Kristina Hooper, chief global market strategist with Invesco in New York.
The digital currency had risen around twentyfold since the start of the year, climbing from less than US $ 1,000 (RM4,086) to as high as US $ 19,666 (RM80,365.11) on Dec 17 on Bitstamp and to over US $ 20,000 (RM81,730) on other exchanges.
“There is no right current price which would reflect the right of the current valuation, “said Andrei Pope scu, Singapore-based co-founder of COSS, which describes itself as a platform that encompasses all features of a digital economy based on cryptocurrency.
“Taking profit is right, while buying into a long term projection is also right. “Popescu said.
Critics have pointed to bitcoin's design flaws and hacks of digital” wallets “in which bitcoins are kept as an alternative to traditional currencies.
“We therefore think that bitcoin is a product that is unable to fulfill the basic functions it is meant to fulfill. We are thinking of it, probably a bubble, that will eventually fade, as other cryptocurrencies will take over, “Citi analysts wrote in a published on Friday
Shmuel Hauser, the chairman of the Israel Securities Authority, was the regulators to voice his concerns.
Singapore's central bank last week issued a warning against investment in cryptocurrencies, saying it considers the recent surge in prices to be driven by speculation and that of the risk of a sharp fall in prices is high.
Prices of other cryptocurrencies, which slid along with bitcoin last week, have also recovered, with Ethereum, the second -biggest cryptocurrency by market size, quoted around US $ 771 (RM3,150.69), up from the Sunday's low of US $ 689 (RM2,815.60) but still far from highs around US $ 900 (RM3,677) hit last week. ers