Bitcoin continues to wobble, trading near $11,000 a day after losing a quarter of its value as traders sought a floor for pricing amid growing concern regulators around the world will move ahead with new rules to restrict the burgeoning cryptocurrency industry. The largest digital currency rose 1 percent to $10,831 at 12:20 p.m. in Hong Kong after slumping as much as 26 percent Tuesday, according to Bloomberg composite pricing. Rival cryptocurrencies Ripple and Ethereum swung between gains and losses.
“Cryptocurrency holders are trying to decide whether to abandon Bitcoin,” Steven Englander, head of research and strategy with Rafiki Capital, said in a Jan. 16 note to clients.
“The dilemma is that once you stop pricing Bitcoin and its derivatives as new assets that will head to the moon, the pricing model is more conventional and much less breathtaking.” At least some retail investors are still trading amid the selloff. “I have a zen philosophy that you just go with the flow,” said George Tasick, a part-time crytocurrency trader in Hong Kong whose day job is making fireworks.
“I’m not really changing my behavior in any way.” Speculators across the globe are struggling to determine when or how market watchdogs may rein in an industry that’s decentralized and derives much of its value from anonymous ownership. Many assertions that digital coins represent a bubble have triggered double-digit selloffs over the past year, only to be followed by rebounds.
In South Korea, shutting down cryptocurrency exchanges is still an option amid ongoing discussions, Finance Minister Kim Dong-yeon said in an
interview with TBS radio Jan. 16. Read more from bloomberg.com…
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