After falling sharply to a near two-week low today, bitcoin prices are on the rebound.

At the close of CoinDesk’s Bitcoin Price Index (BPI) for 5th January, the price of bitcoin was $1,005.82, a figure that was up more than $100 from earlier in the day.

At roughly 14:00 UTC, bitcoin suffered a sudden and sharp selloff, plunging close to $200 in a movement that sparked headlines around the globe. The decline was all the more shocking to many, as it came just after hours of trading within $20 of the all-time high set in 2013.

Petar Zivkovski, chief operating officer at cryptocurrency exchange Whaleclub, emphasized the severity of the decline, telling CoinDesk:

“Today’s selloff was one of the most aggressive I’ve seen in years.”

Yet, following these extreme price movements, the digital currency has been far more calm, comparatively, fluctuating largely between roughly $930 and $990.

At close of day, bitcoin prices were again trading above $1,000, though they were about 11% lower than the opening price of $1,129.87.

Even after this sharp decline, however, bitcoin prices may have more further to go, according to cryptocurrency fund manager Jacob Eliosoff.

“Bitcoin is still way up over the last month, and could certainly slide more,” he told CoinDesk. “A robust price rise needs to be built on a base of long-term users (or at least holders), and I’ve seen no evidence of such a constituency behind the last month’s rise.”

Eliosoff is not alone in his assessment either, as commentators are beginning to suggest that the digital currency may be overbought.

Calm in storm image via Shutterstock


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