The quotation has diminished drastically this week, getting closer to $ 13 000. That is a 30% decline, comparing the current price with the price recorded at the beginning of the week.
Yesterday, 03:50 GMT, Bitcoin was trading at $ 13 248 compared to $ 15 800 in the same morning, which means an decrease of more than 16 % in several hours. That is a lot even when it comes to virtual currencies.
Some financial experts claim that this drop is normal, because it has grown so much this year, it should ballance its value a little. Moreover, it is not the first time when Bitcoin records such big fluctuations. In November, it has dropped with one third of its whole value. In four days, it has decreased from $ 7 888 to $ 5 500 and in September, it went from $ 4 979 to $ 2 972, which means a 40% reduction.
At the beginning at the year, the value of the Bitcoin was near $ 1 000, but it manage to increase to a high of $ 19 666, after CME launched Futures. Starting from Sunday, it lost a third of its top value. If we look back at Bitcoin’s past, its price as dropped every quarter since its first launch. The biggest decline, was in January 2015 when it dropped nearly 60 % and March 2015 when it nearly reached 70 % drop.
So, a 30-35 % subsidence is not such a big deal if you take in consideration Bitcoin’s past fluctuations.
Unlike other currencies as dollar or euro, this virtual currency is not generated by a central bank, therefore it has no government or institution behind. It is created decentralized by computers that use complicated algorithms.
In this case, banks don’t play the classic role, that of mediator in financial transactions. Also, there is a sort of criticism coming from the banks that question the abnormal appreciation.