Bitcoin price is going crazy since December last year as the cryptocurrency is plunging in its value as it hit its lowest in more than two months. But thankfully it has bounced back a little almost $2000 after hitting $5,947 on Tuesday.
The widely known cryptocurrency reached an all-time high in December 2017 when it reached $19,000 and since then many investors have suffered by losing a significant portion of their money as the price of bitcoin today is around $8,000.
Since 19th December, the day when bitcoin was at its height, the cryptocurrency has dropped by 63 percent, according to the CoinmarketCap. So in other words, if you invested $1000 at that time, all you’ve got left as of now is $370, which is a huge loss that can leave anyone in shambles.
Bitcoin’s price is determined by a process of price discovery on exchanges, like GDAX where several factors like government’s approval can change the rules of the game and affect the price at the end.
Last year, FBR launched a crackdown against the bitcoin traders in the country alleging that the investors were using digital currencies to evade taxes. You can click here to find out what other central banks around the world think about cryptocurrency.