Bitcoin is suffering its third correction of the year. On Friday, the cryptocurrency was trading on BTC Markets at around A$8950. Since its big fall to around $8000 in February it has been as high as $14,830 in March, $12,790 in May and 11,100 in July. Its troughs have all been around $8000.
Bloomberg quoted portfolio manager at Black Square Capital, Chris Yoo, who said: “This correction is not unexpected due to the over-valued nature of many blockchain projects and regulatory uncertainty.”
Yoni Assia, the chief executive of trading platform eToro, says demand fr Bitcoin and other cryptocurrencies has not declined.
Assia says: “Cryptocurrency is still a nascent market. Emerging technologies like this often see swings in their value in the early days.
“Market adjustments like those we have experienced recently help to stabilise prices. We have not seen a significant dip in demand for digital assets.”
Crypto news site CCN says another factor in the ongoing rice weakness is the large number of start-ups funded by initial coin offerings taking their cash and destabilising the cryptocurrencies supporting their ICOs.
Other analysts have put the latest Bitcoin weakness down to strengthening of the US dollar.