Bitcoin is back and has reached $16,000 the Rebound Begins

Nishanth Shetty

December 27, 2017 9:24 am

Bitcoin is back and has reached $16,000 the Rebound Begins | Coindelite News
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Bitcoin Price Today

Bitcoin price surged to $16,000 on Tuesday since traders of the world’s largest cryptocurrency attempted to draw a line under its roller coater five-days drop.

Bitcoin’s price improved by 16% to as much as $16,039.51, the biggest profit on a closing basis than two weeks and the first in six days. Altcoins such as Litecoin and Ethereum were up 4.4% and 2.6%.

The growth will be a welcome relief for crypto enthusiasts after bitcoin declined 26% in the five days through Monday in what was seen as a major test for the nascent currency industry. The progress says that even as financial authorities issues warnings regarding the risks of a bubble in the asset class, investor interest will remain unimpaired, at least for now.

Mohamed El-Erian wrote in a Bloomberg View column:

“The most important question facing it is whether the recent price correction will prove to be what market participants refer to as ‘healthy’, excessive irrational exuberance, provides for the entry of institutional investors, encourages the development of market-deepening products, and widens and balances out the investor base and the product offering.”

Beaten by competitors

The critics argue that the nature of the cryptocurrency and the blockchain technology is the game changer of the financial world. Investors say it has no inherent value and price moves to display the symbols of a speculative asset bubble.

Among bitcoin’s wild price ride, investor’s attention is also constantly turning into other cryptocurrencies. As bitcoin hit a record of $20,000, it has actually had competitors such as Ripple and Ethereum.

Mike McGlone, Bloomberg Intelligence analyst wrote:

“Bitcoin is the crypto benchmark, but not the best representation of the technology, a proper focus for institutional investors is likely the broader market, including “forks” and or 2G offshoots that address bitcoin’s flaws.”

McGlone included:

“Ethereum appears prime to assume benchmark status, though bitcoin forks ripple and litecoin are the primary up-and-coming contenders.”