Bitcoin price falls below $10,000

The bitcoin’s value has dropped by 30 per cent since last week, it is now below $10,000 as opposed to $ 14,000 previously.

Bitcoin appears to be riding on a rollercoaster recently: its value fell by 8.1 per cent, that is, to $9,717 on Tuesday while on Wednesday, the cryptocurrency rose up to $13,879.

The digital currency had been stuck below $6,000 for months until Facebook announced plans for its very own cryptocurrency, Libra next year.



Other digital currencies have also fallen back. Investors became concerned after an investor was reported to have bet on Sunday on the decrease in the bitcoin.

Some analysts believe that the bitcoin’s value would either increase back to $20,000 or decrease to below $3,000. This is deduced from previous trends: the bitcoin rose to $20,000 in 2017 and then suffered remarkably in 2018.

Critic Nouriel Roubini believes that the value of the bitcoin will ultimately fall to zero. “Its true value is negative, not zero, given its toxic externalities! It will get to zero in due time,” he said in a tweet.

Simon Peters, an analyst at global investment platform eToro, also gave his two-pence: “We appear to be in a period of indecision, where the market is figuring out where to go next after its heavy surge and sell-off.”



Investors are looking forward to Facebook’s participation in digital currencies and are hopeful that it will bring greater legitimacy to the area. Regulators worldwide have warned that this action could cause greater controls and stricter regulation to protect consumers.

Governor of the Bank of England Mark Carney also delivered the same warning to Facebook while saying that the central bank would support new ventures into the UK financial system.

According to Bloomberg, Henry Kravis, co-founder of the US private equity firm KKR, recently bet on cryptocurrencies. He is investing in a cryptocurrency fund provided by ParaFi Capital. Other prominent investors include British hedge fund manager Alan Howard, PayPal co-founder Peter Thiel and US hedge fund manager Louis Bacon.

This article originally appeared on The Guardian.