The cryptocurrency, which was at about $1,000 at the year\u2019s start, had surged to a record high of $19,666 on Sunday in the lead up to exchange giant CME Group\u2019s launch of its bitcoin futures. It has since lost about a third of its value.<\/p>\n
\u201cKeep in mind that bitcoin has gone up a lot this year, so a correction is always likely,\u201d said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers in Sydney.<\/p>\n
\u201cA lot of the capital is flowing from bitcoin into alternative coins. You\u2019ve seen companies like Verge and Ripple, which are over 400% in the last week,\u201d Chanel at ASR Wealth Advisers said.<\/p>\n
Verge and Ripple are among an array of cryptocurrencies that both emulate and compete with bitcoin.<\/p>\n
Bitcoin is known to go through wild swings. In November, it tumbled almost 30% in four days from $7,888 to $5,555. In September, it fell 40% from $4,979 to $2,972.<\/p>\n
\u201cTrading in bitcoin is akin to gambling, so its movements don\u2019t follow logical patterns,\u201d said Takashi Hiroki, chief strategist at Monex Securities in Tokyo.<\/p>\n
\u201cUnlike equities and bonds, it is not possible to calculate expected returns on bitcoin, so buying it becomes a gamble rather than an investment.\u201d<\/p>\n
While CME and its rival Cboe Global Markets move to list bitcoin futures has given the digital currency some perceived legitimacy, some policymakers remain skeptical.<\/p>\n
South Korea\u2019s Financial Supervisory Service said on Tuesday it does not consider bitcoin and other cryptocurrencies to be currencies of any kind.<\/p>\n
Japanese Finance Minister Taro Aso said on Tuesday that bitcoin had not been proven as a credible currency.<\/p>\n","protected":false},"excerpt":{"rendered":"
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