TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Pick n Pay partners with Takealot in online shopping push

      17 May 2022

      Everything PC S01E02 – ‘AMD: Ryzen from the dead – part 2’

      17 May 2022

      Elon Musk is becoming like Henry Ford – and that’s not a good thing

      17 May 2022

      WhatsApp Premium: new subscription plan in development

      17 May 2022

      Fibre break knocks out Telkom’s network

      17 May 2022
    • World

      Musk tells Twitter: prove your bot claims, or the deal is off

      17 May 2022

      Intel shareholders reject pay packages for top executives

      17 May 2022

      Musk hints at reduced offer price for Twitter

      17 May 2022

      SpaceX gets $125-billion valuation in private placement

      17 May 2022

      Crypto’s wild week offers a much-needed warning

      16 May 2022
    • In-depth

      Stablecoins wend wobbly way into the unknown

      17 May 2022

      The standard model of particle physics may be broken

      11 May 2022

      Meet Jared Birchall, Elon Musk’s personal ‘fixer’

      6 May 2022

      Twitter takeover was brash and fast, with Musk calling the shots

      26 April 2022

      Musk wants free speech on Twitter but spent years silencing critics

      21 April 2022
    • Podcasts

      Everything PC S01E01 – ‘AMD: Ryzen from the dead – part 1’

      10 May 2022

      Llew Claasen on how exchange controls are harming SA tech start-ups

      2 May 2022

      The inside scoop on OVEX’s big expansion plans

      20 April 2022

      Decentralised finance, the ‘end of banks’ – and what comes next

      25 March 2022

      Maxtec and BigFix: helping stop cyberattackers in their tracks

      18 March 2022
    • Opinion

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022

      Cash is still king … but not for much longer

      31 March 2022

      Icasa on the role of TV white spaces and dynamic spectrum access

      31 March 2022

      Minister Ntshavheni is at risk of tripping up

      24 March 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Cryptocurrencies»Bitcoin steadies after biggest slump since March meltdown

    Bitcoin steadies after biggest slump since March meltdown

    Cryptocurrencies By Agency Staff27 November 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Bitcoin and other digital coins steadied on Friday after posting some of the biggest declines since the onset of the pandemic, a selloff that stoked fresh questions about this year’s boom in cryptocurrencies.

    Bitcoin was little changed at just above US$17 000, following a slide of as much as 14% on Thursday. Fears over tighter crypto regulations and profit-taking after a frenetic rally were among the reasons cited for the tumble.

    “After big rallies in shares and various other assets, they are all vulnerable to a bit of a pause,” said Shane Oliver, head of investment strategy at AMP Capital Investors in Sydney. “But bitcoin more than most, as it surged higher far more and had become far more frothy with speculative interest.”

    The rout in bitcoin began just hours after it rose to within $7 of its record high of $19 511 set in December 2017

    The slump pared bitcoin’s rally this year to about 140%, a climb that’s split opinion. Crypto believers tout a broadening investor base and the search for a hedge against dollar weakness amid loose monetary policy as reasons for a durable boom. Set against that is a history of big swings, including the run up to a record three years ago that was followed by a spectacular bust.

    Proponents of digital assets say the current focus on cryptocurrencies compared to three years ago is different because of growing institutional interest, for instance from the likes of Fidelity Investments and JPMorgan Chase & Co.

    Inevitable reckoning

    Just this week, Van Eck Associates launched a bitcoin exchange-traded note on the Deutsche Boerse Xetra exchange. In October, PayPal said it would allow customers access to cryptocurrencies.

    Others see signs of retail investors piling in to chase momentum for fast gains, storing up an inevitable reckoning. The rout in bitcoin began just hours after it rose to within $7 of its record high of $19 511 set in December 2017.

    Concern about potential US crypto rules help explain Thursday’s price drop across most major digital assets, said Ryan Rabaglia, global head of trading at OSL brokerage in Hong Kong.

    “It’s also not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides,” he said. “Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play.”

    Bitcoin rose 0.3% as of 8.50am on Friday in Tokyo, while ether advanced 0.8% and XRP — which slumped about 20% Thursday — climbed 1.7%.

    AMP Capital’s Oliver said the depth of the recent plunge shows bitcoin is “hardly a secure store of value”, adding it may be vulnerable if Covid-19 vaccines lead to a sharp global recovery next year.

    “Money printing and the debasement of paper currencies that bitcoin enthusiasts are seeking to protect against may start to fade as an issue,” he said.  — Reported by Adam Haigh, (c) 2020 Bloomberg LP

    Bitcoin top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleHuawei founder urges Honor brand to become competitor after split
    Next Article Electric car makers are in a stock market bubble

    Related Posts

    Pick n Pay partners with Takealot in online shopping push

    17 May 2022

    Everything PC S01E02 – ‘AMD: Ryzen from the dead – part 2’

    17 May 2022

    Elon Musk is becoming like Henry Ford – and that’s not a good thing

    17 May 2022
    Add A Comment

    Comments are closed.

    Promoted

    Detect and prioritise cloud security risks in minutes, not months

    17 May 2022

    Eye on the future: an interview with PureSoftware CTO Tushar Bhatkar

    17 May 2022

    Accelerating test automation

    16 May 2022
    Opinion

    From spectrum to roads, why fixing SA’s problems is an uphill battle

    19 April 2022

    How AI is being deployed in the fight against cybercriminals

    8 April 2022

    Cash is still king … but not for much longer

    31 March 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.