Bitcoin is rocketing and on track for its biggest gain since April

  • 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.
  • 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.

Now read:

NOW LOOK: Money & Markets video

Email and Business Insider alerts

The site highlights every day in your inbox.

Follow Business Insider Australia on Facebook, chirping, LinkedIn and Instagram.

[ad_2]Source link