Bitcoin Is Finally Starting to Settle Down

Pinterest

Bitcoin regained its footing on Monday, having suffered its heftiest falls since early 2015 between Thursday and Saturday as investors sold the digital currency on worries about its future.

Having soared to an all-time high of $1,350 on the Bitstamp exchange on March 10, on speculation that regulators could approve the first U.S. bitcoin exchange traded fund the following day, the digital currency then slipped back.

Its falls began accelerating on Thursday and it hit a five-week low of $944.36 on Saturday. But bitcoin recovered a little on Sunday and built on those gains on Monday, climbing around 2.5% to roughly $1,050 by 18:15 GMT.

Get Data Sheet, Fortune’s technology newsletter

Bitcoin experts said its steep losses were driven by a longstanding, and intensifying, row over whether – and how – to increase the capacity of the “blocks” that bitcoin transactions are processed in, so as to make sure there are no delays in transactions being finalized.

“The bitcoin scaling debate is a risk for the network and highlights core issues in terms of governance and this is where more nimble crypto competitors see advantages in fleshing out their capabilities sooner,” said Charles Hayter, CEO of digital currency analysis website Crytocompare, in London.

Related: This New Tactic Might Finally Lure Big Investors to Bitcoin

At the same time that bitcoin was plunging, a newer, rival “cryptocurrency” was soaring: ether. The digital currency behind Ethereum – a project that some experts say holds more potential than bitcoin – has almost tripled in value this month, jumping to record highs of around $45.

Some experts said traders were selling bitcoin and buying ether, which was exacerbating the falls in the original cryptocurrency.

“Traders in the space are looking for better returns in the more risky and nascent cryptos such as Dash, Monero and Ethereum (and are) looking to replicate the extraordinary returns that bitcoin saw in its early days,” added Hayter.

U.S. regulators dashed Cameron and Tyler Winklevoss’s bitcoin ambitions earlier in the month by rejecting their application to list an exchange-traded fund linked to the digital currency.

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Comments

comments

Filed in: Mainstream Bitcoin Tags: ,

You might like:

Bitcoin Rebounds From Two-Month Low to Top $1,000 Bitcoin Rebounds From Two-Month Low to Top $1,000
BitOasis Expands Credit Card Bitcoin Buying to 5 New Countries BitOasis Expands Credit Card Bitcoin Buying to 5 New Countries
Beijing City Regulator Calls For Blockchain Standards Beijing City Regulator Calls For Blockchain Standards
European Commission Proposes Blockchain RegTech Pilot European Commission Proposes Blockchain RegTech Pilot
Iphone Users Can Now Buy Bitcoins Directly Inside Breadwallet Iphone Users Can Now Buy Bitcoins Directly Inside Breadwallet
SolidX Bitcoin ETF Deadline Approaches Although It Has Little Chance of Getting Approved SolidX Bitcoin ETF Deadline Approaches Although It Has Little Chance of Getting Approved
Is It Possible To De-anonymize 100% of Bitcoin’s Transactions? Is It Possible To De-anonymize 100% of Bitcoin’s Transactions?
Strange Cryptocurrencies You Won’t Believe Exist Strange Cryptocurrencies You Won’t Believe Exist
© 2017 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.
Email
Print