After a strong post-Christmas rally, the value of Bitcoin fell below $15,000 once again. In mid-afternoon trading, the cryptocurrency fell 6.3 percent to just under $15,000. Rival cryptocurrencies ehterum and litecoin also fell, but ripple saw an increase of 8 percent, according to Bloomberg
Bitcoin lost as much as 44 percent of its value during a five-day slump last week. Just prior to the slump, Bitcoin touched $20,000 after the cryptocurrency started December on a torrid pace. The CME Group exchange saw Bitcoin futures fall by as much as 3.6 percent.
Many investors were looking for safer alternatives to Bitcoin, so they began buying shares of companies instead of buying cryptocurrencies directly. On Track Innovation and Digital Power both rose in early trading as investors began placing their bets on companies that mine digital coins.
There is an ongoing debate about how to accurately value cryptocurrencies, namely Bitcoin. After a nearly 1,600 percent increase in the value of the world’s most popular digital currency this year, analysts what to know what the underlying asset is that supports the value of Bitcoin. Some analysts fear that it is impossible to place an accurate value on the cryptocurrency since there is no real tangible value.
Some analysts believe the recent declines in the value of cryptocurrency signals further declines, especially for skeptics who feel there is no way digital currencies will work as a viable medium of exchange.
Ric Spooner, an analyst for CMC Markets, states that once a big downward movement happens like the recent selloff, a complex and larger correction is on the horizon. Spooner believes Bitcoin could drop to $5,700 in the next few months.
Some analysts speculate the digital currency could see wild shifts in value, which could range anywhere from $6,500 to $22,000 throughout 2018. If analysts are correct at Morgan Stanley, the real value of digital currencies is zero in 2018.