Bitcoin slumped to a yearly low of £2,556 ($3,218) on December 14 but showed signs of a huge recovery on Monday. The cryptocurrency rose to a high of $3,410 on Monday at 1.04pm, before slowing falling to $3.381 at 1.36pm, according to Coinbase. Bitcoin’s price rose by 4.86 percent in the last 24 hours after starting off at $3,221.
Fears over the cryptocurrency giant’s price were growing as the value of BTC has steadily declined since November.
Bitcoin was trading close to $5,500 last month leading to concerns over its future.
Last year on 18 December 2017, Bitcoin peaked at a high of $18,877 before rapidly declining.
Mati Greenspan, a Senior Market Analyst for eToro, claimed the huge fall was not “unprecedented”.
He said: “It’s been one year now since bitcoin achieved an outstanding all-time high of $20,155 per coin and today it seems we’re testing new lows of $3,122, a total drop of 84.5 percent.
“This massive slide in value may seem unprecedented but in fact, retracements of this magnitude have happened no less than four times in Bitcoin’s short history.”
David Thomas, Director and Co-Founder of GlobalBlock, said: “With BTC down another 7 percent this week, $3,000 is thus far proving to provide some decent support although many feel that we are still yet to ‘bottom out’.
“Any sustained breakdown below the $3,000 will put the predicted $2,400 level firmly in sight, which should hopefully exhaust the bears and tee the market up for a more positive start and upswing into 2019.
“As we edge towards the festive period, volume has appeared to drain out of the market over the last 7 days (down 24 percent) with volume now having halved (from $6.5bn) over the last three weeks.”
This week Calvin Ayre, founder of Bitcoin Cash and now one of the figureheads of BTC Satoshi Vision, warned BTC could become worthless in 2019.
He said: “I’m afraid I am predicting it to go to zero value as it has no utility, it does not do anything and they intentionally are anti-scaling.”
Bitcoin Market Price Chart in RealTime