Bitcoin and other cryptocurrencies were pummeled on the last trading day before the Christmas break. Bitcoin shed 30% in value and dropped to the $11,000 in the same month that saw it reach the $20,000 mark at its peak. Ethereum, Bitcoin Cash, Litecoin, and other cryptocurrencies also experienced significant declines.
In late November, I’d discussed the dramatic rise in cryptocurrencies. At the time, Bitcoin had not yet passed the $10,000 mark. As of Boxing Day evening, Bitcoin rebounded to $16,000. Bitcoin and other cryptocurrencies have attracted a great deal of mainstream attention in 2017 as well as greater proportions of institutional and retail investors.
Morgan Stanley estimated that $2 billion has been invested in hedge funds that are geared towards cryptocurrencies. The bank was also sharply critical of Bitcoin in a research note, outlining a several reasons its real-world value may be seriously in question. In any case, the cryptocurrency market will remain front and centre for market watchers heading into 2018.