According to Bloomberg's January 2nd report, Bitcoin faced a rocky start to 2018. The cryptocurrency recorded its first yearly opening decline since 2015, extending losses from its December 18th peak of $19,511.
Key Market Movements
Bloomberg data revealed that as of Monday 3:55 PM EST (4:55 AM Beijing Time), Bitcoin traded at $13,440**—a **6.1% drop** from the previous Friday's close. Coinmarketcap.com, which tracks daily Bitcoin prices, showed Monday's trading price also dipped below Sunday's high of **$14,156.
Historical Context
- 2017 Performance: Bitcoin surged over 1,300% annually, starting the year with a 3.6% increase to $998 on January 1st.
- 2018 Contrast: The current decline marks a significant shift from last year's bullish trend that fueled global cryptocurrency frenzy.
Market Dynamics
Rising Competition
Bitcoin's growth spurred numerous competitors. Last month, Wall Street launched Bitcoin futures contracts, with prices peaking on December 18th post-CME Group's derivatives rollout. Some traders speculate these futures may encourage short-selling strategies.
Challenges and Setbacks
Recent developments cast shadows:
- Morgan Stanley Report: Analyst James Faucette suggested Bitcoin's "true value" could be zero.
- Exchange Hack: South Korea’s Youbit exchange shut down and filed for bankruptcy after its second 2017 cyberattack.
FAQs
Q: Why did Bitcoin’s price drop at the start of 2018?
A: Market corrections followed its December 2017 peak, compounded by futures trading and negative analyst outlooks.
Q: How does this decline compare historically?
A: This is Bitcoin’s first yearly opening loss since 2015, contrasting sharply with 2017’s 1,300% rally.
Q: What impact do Bitcoin futures have?
A: Futures enable short-selling, potentially increasing price volatility. 👉 Learn more about crypto trends
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