Wainwright Marks Management – Cryptocurrency reaches new low

On Tuesday Bitcoin, once the world's best performing cryptocurrency, reached its lowest point so far this year, falling almost 10 percent to reach less than US$4,300. Analysts at Wainwright Marks Management say this brought the cryptocurrency's losses to a staggering 25 percent in a week.

Other less well-known crypto-coins did not escape losses say analysts at Wainwright Marks Management. Ethereum's ether and Ripple's XRP dropped by 16 and 14 percent respectively. The fall came after an unexpected dip last week which unsettled Bitcoin prices that had steadied at the US$6,500 mark for the last few months.

Bitcoin plunged to its lowest point since October last year and, by midafternoon on Tuesday, was trading at US$4,750 on the Bitstamp exchange. Analysts at Wainwright Marks Management had been anticipating a break out. With a relatively stable price, a buildup of stop-loss orders had accumulated and the price drop was a result of mass liquidation of those orders.

Tuesday's cryptocurrency losses coincided with wider losses for financial markets with European stocks falling as weak retail data affected Wall Street.

Over the past year Bitcoin has declined by more than 75 per cent since reaching a record high of nearly US$20,000 in December last year.

Although Bitcoin was once hailed as a currency to change the face of world finance, Wainwright Marks Management analysts say the lack of involvement from mainstream investors has made this prediction unlikely to materialize.

Wainwright Marks Management analysts say mainstream investors remain wary of investing in bitcoin as they feel it lacks sufficient regulatory oversight and that frequent fluctuations in price make it a risky investment.