Bitcoin is still falling against the dollar on Friday after losing more than a fifth of its value in trade on Thursday.
Bitcoin is down over 7% against to $944.14 at just after 9.30 a.m. GMT (4.30 a.m. ET), according to Markets Insider. That’s down from over $1,100 earlier in the week.
Bitcoin surged in the weeks running up to Christmas, battled volatility in the run up to New Year and first few days of 2017, before tanking on Thursday.
The exact reasons for the currency’s rise and fall are unclear, but some commentators have suggested that the rise was caused by Chinese investors looking to move their money out of China ahead of a rumoured further devaluation of the renminbi. This theory is backed up by moves in the renminbi yesterday which coincided with bitcoin’s plunge. The renminbi rallied 2.6% against the dollar, posting its biggest two-day gains ever.
Mati Greenspan, a senior market analyst at trading platform eToro, says in an email on Friday morning: “We can see a huge correlation between the two currencies with the USD/CNH often acting days or even months ahead of Bitcoin.”
But he adds: “If we drill down, we can see that the $150 plunge that we saw in bitcoin actually came hours after the PBoC’s nuke [data from the People’s Bank of China that caused the renminbi to spike].”
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
