"Is this going to be the next big leg in price discovery or the beginning of the crash market sceptics have been warning against for the biggest cryptocurrency?" asked Naeem Aslam, chief market analyst at Think Markets.
At this point, it's worth it just to hang on your Bitcoins, given the extraordinary run that it's been on. The cryptocurrency gained more than 1,370% since the current year started.
But those declines didn't stop the overall market valuation for cryptocurrencies from pushing past the $400 billion mark. The continued gains come just a week after bitcoin broke above $11,000 for the first time. Concerns about bitcoin mining's huge energy consumption There are growing concerns, especially among some environmentalists, of the huge energy consumption of bitcoin mining. The latest surge in bitcoin's price is often attributed to enthusiasm about the introduction of futures trading for the cryptocurrency. The issue was discussed in a recent Digital Journal article.
U.S. regulators last week cleared the way for Bitcoin futures to trade on major exchanges, including the world's biggest futures centre the Chicago Mercantile Exchange (CME).
However, this hasn't slowed down Bitcoin, more and more people across the world are taking their chances on the bitcoin lottery, with institutional investors getting ready for crypto trading.
Pankaj Jain, a New York-based bitcoin investor, advised small investors not to invest more than 1 to 3 percent of their net worth in cryptocurrencies, adding that high-net worth investors should refrain from investing more than 5 to 10 percent, said the report. Larry Fink, CEO of BlackRock opined that bitcoin is an "index of money laundering". While this is possible, the derivatives can also be used to make profit as an asset loses value. Volatility appears likely to continue for a while.
This has also sparked controversy from the establishment in fact even the US Senate is considering drafting a bill to outlaw the concealment of ownership of digital currency accounts, which could threaten Bitcoin.