The value of Bitcoin and other digital currencies fell on November 25, sparking speculation about how long the cryptocurrency. Bitcoin has fallen by as much as 8.7% since early August, while other digital currencies such as Ethereum have also seen declines.
Analysts said profiteering after the recent rally and speculation about tighter regulations were among the reasons for the decline. Even with the pullback, Bitcoin has doubled this year. Bitcoin fell 7% at 8:01 a.m. in London to $17,555, while Ethereum fell more than 10% to around $514.
Concerns about the possibility of tighter regulations on cryptocurrencies in the U.S. , as well as profit-taking, help explain the price declines seen yesterday in most major digital currencies, said Ryan Rabaglia, global head of trading at Hong Kong brokerage OSL
Proponents of digital currencies say the current focus on cryptocurrencies is different from three years ago due to growing institutional interest, for example from Fidelity Investments and JPMorgan Chase & Co.
Additionally, this week, Van Eck Associates Corp. launched a Bitcoin exchange portfolio on the Deutsche Boerse Xetra exchange . PayPal Holdings Inc. said in October that it would allow its customers to access cryptocurrencies.
There is also a rumor surrounding Ethereum, the world’s most actively used blockchain, which is set for a network upgrade that would allow it to process a similar number of transactions as Mastercard Inc. and Visa Inc. The move to the new system could limit the total supply of Ethereum, whose price has quadrupled this year.
Vijay Ayyar, head of business development at Singapore-based Luno, said he expects Bitcoin to stabilize and reach all-time highs. However, he added that this will be followed by a larger decline in the cryptocurrency.
