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- Bitcoin even rose by 10% on Wednesday, its biggest daily gain since mid-April.
- It has plummeted by 40% since November 14, a few days before a fork in its money bitcoin rival.
- In the long run, cryptocurrencies are in good shape because the blockchain industry is growing at a rapid pace, an analyst said.
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Watch the live bitcoin trade.
Bitcoin, the largest cryptocurrency for market value, even rose by 10% on Wednesday to an intraday maximum of $ US4,725 a currency, earning its biggest daily gain since mid-April.
Wednesday's wave comes after Bitcoin and its rival cryptocurrencies have been hit in recent weeks. Bitcoin has seen 40% of its market value wiped out on November 14, just days before the hard hit of its bitcoin cash rival. The digital currency touched a low near $ US3,600 on Monday, the weakest since September 2017,
"The main engine of market moves is technical," said Mati Greenspan, market analyst at eToro's multi-asset brokerage.
The price of Bitcoin has slipped this month between the lack of new stocks and today's wave is a correction of part of that sale, according to Greenspan. He says that cryptocurrencies are in good shape in the long term because the blockchain sector is growing at a rapid pace and the innovation to transfer value through the Internet without intermediaries has great potential for growth.
"We're still scratching the surface on it," he said.
It was a difficult year for investors in digital currency, who saw prices explode in 2017 while cryptomania hit the world. Bitcoin, for example, started 2017 with a value of less than $ US1,000 a currency before rising above 2,000% to a maximum of US $ 19,511.
This year has been a different story, however, with the value of cryptocurrency that has plummeted by 68%.
"Bitcoin and all cryptocurrencies are considered high risk," said Greenspan, adding that investors should always diversify their portfolios when they invest in risky assets.
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