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Bitcoin's bubble bursts on unlucky investors

Newshub logoNewshub 13/06/2018 Newshub staff
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In 2017, Bitcoin was everywhere. Skyrocketing prices were minting virtual millionaires, and it seemed everyone was buying coins. But what a difference half a year makes.

Bitcoin has plunged in value this year, falling to a new four-month low of US$6,370 (NZ$9066).

The world's largest digital currency has been caught in a slump recently, wiping billions of dollars away.

It's lost 50 percent of its value since January, and has lost 25 percent in the first two weeks of June. Experts warn the decline is likely to continue.

"We see room to fall further," Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, told Forbes.

"Our initial findings indicate a potential bottom around US$5,000 [NZ$7122] before any true recovery will gain momentum."

Prices plummeted after South Korean virtual currency exchange Coinrail admitted hackers had stolen almost a third of the virtual currency it held.

They've also been hurt by an ongoing probe into price manipulation, with reports US regulators have asked online exchanges for trading data.

Oliver Isaacs, a blockchain advisor, told Forbes the short-term price outlook is bad.

"A corrective rally might bring the price back above US$7,000 [NZ$9971]," he stated.

"However, technical analysis shows a strong downtrend and weak volume is unlikely to support a strong recovery in the short term."


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