Tuesday, January 16, 2018
Bitcoin held above $11,000 a day after losing a quarter of its value as traders sought a floor for pricing amid growing concern regulators around the world will move ahead with new rules to restrict the burgeoning cryptocurrency industry.
The largest digital currency rose 4.7 percent to $11,190 at 10:35 a.m. in Hong Kong, recovering some ground after slumping as much as 26 percent Tuesday according to Bloomberg composite pricing. Ripple added 10 percent while Ethereum rose about 6 percent as rival cryptocurrencies also rebounded modestly.
“Cryptocurrency holders are trying to decide whether to abandon Bitcoin,” Steven Englander, head of research and strategy with Rafiki Capital, said in a Jan. 16 note to clients. “The dilemma is that once you stop pricing Bitcoin and its derivatives as new assets that will head to the moon, the pricing model is more conventional and much less breathtaking.”
Speculators across the globe are struggling to determine when or how market watchdogs may rein in an industry that’s decentralized and derives much of its value from anonymous ownership. Many assertions that digital coins represent a bubble have triggered double-digit selloffs over the past year, only to be followed by rebounds.