Post-Christmas Party, Bitcoin Clinches The Lost Ground, Surges Past $15,500
It was not a great Christmas time for bitcoin investors as Bitcoin and the overall cryptocurrency market was undergoing a heavy correction. On Dec. 22, Bitcoin prices plunged by more than 30% as the price of Bitcoin slipped way past below $13,000 from its all-time high.
Having undergone a major rally contributed by Bitcoin and other altcoins, this was the first major correction which the market had witnessed in the past two months. Finally, after a huge bearish momentum, a bit of relief comes for the investors as Bitcoin has started to show positive momentum soon after Christmas the price of Bitcoin surged by 15% from sub $14,000 to hit a 24-hour high above $16,000.
Currently, as per our data, Bitcoin is trading at $15,833.67 at the press time and looks quite strong on the crypto indices. It seems that some sort of optimism is back in the market even as many financial authorities continue to issue warnings of the existence of a bubble in the market.
In a Bloomberg View column published on Tuesday, Mohammed El-Erian wrote: “The most important question facing it is whether the recent price correction will prove to be what market participants refer to as ‘healthy’.” Mohammed says that such a correction shakes out “excessive irrational exuberance, provides for the entry of institutional investors, encourages the development of market-deepening products, and widens and balances out the investor base and the product offering.”
This year of 2017, and especially the second-half has proved to be a phenomenal year for cryptocurrencies. The meteoric rise of Bitcoin and a huge retail investor participation has successfully managed to seduce even big Wall Street giants to participate in the crypto mania.
Since the announcement of Bitcoin futures contract by the CME Group in the last week of Oct. 2017, there has been a tremendous surge in the institutional participation in Bitcoin, taking the price of cryptocurrency to its record-high near $20,000 levels.
Many big financial companies are also planning to launch with different Bitcoin-related investment products in the market by next year. The next craze after Bitcoin futures is about Bitcoin Exchange Traded Funds (ETFs) and recently NYSE and CBOE have filed for Bitcoin ETFs with the SEC and are waiting for the approval nod.
As on the current date, Bitcoin has surged by 1600 percent since the start of 2017 and with three more days to go anything can happen, knowing the huge volatile nature of the cryptocurrency. The arrival of Bitcoin products in next year is expected to bring a lot of stability and legitimacy to the market.