Bitcoin – insanely popular and no less volatile crypto currency – finished last week with a decline of almost 30%, and Saturday’s attempt to recover from the recession was not crowned with success. On Sunday, the bitcoin rate went below the 12000 mark amid growing concern about the safety and reliability of the young crypto currency market. Last Friday, the digital coin tested a minimum in the area of 10775 and, despite the fact that today it managed to return to the area of 13445 by the morning, there is a growing panic in the market.
Traders are afraid to buy a cheaper currency, fearing another hard-core, which may occur in the last days before the New Year. Recall that it was originally scheduled for November, but because of disagreements in the developer community, it was decided to postpone it to December 28. The upgrade of Segwit2x should increase the block size to 4 MB, increase the block’s production rate to 2.5 minutes and add support for smart contracts.
Michael Novogratz, a well-known hedge fund manager and a fierce supporter of crypto-currency, added fuel to the fire on Friday, saying he would wait with the launch of the crypto-currency hedge fund until bitcoin fell to 8000. Recall that earlier he had predicted to him growth to 50,000 by the end of next year. “I think that the market has formed a short-term top,” Novograg wrote on Twitter. “The bulls did not give up, they just took a break,” he added. “I will explain that we postponed the launch of the hedge fund planned for last week with the involvement of external investments, because we consider the current conditions unfavorable for new players. But this does not mean that we have changed our bullish attitude towards this market. ”
Many analysts compare the explosive interest in bitcoin and other crypto-currencies with speculative fever, it is not surprising that regulators around the world are concerned about its potential consequences and are not tired of warning investors about the risks they are exposing themselves to in volatile digital money markets. Last week, Long Island Iced Tea Corp, the maker of cold tea, jumped 500% after the company added the word block block (Long Blockchain Corp) to its name. Confirming its status as the craziest segment of financial markets, last month bitcoin demonstrated volatility that was many times greater than the scale of US stock shocks at the peak of the 2008 financial crisis, Black Monday, 1987, and Black Tuesday, 1929, marking the beginning of the Great Depression.