On Saturday, Bitcoin prices began to recover after a massive four-day selloff that saw the world’s most well-known digital currency lose more than 40 percent of its value. After crashing below $11,000 late in the week, the price rebounded on Saturday to more than $15,000 before Tumbling below $14,000 again in Sunday trading. Other major cryptocurrencies experienced similar volatility throughout the week.
Some observers attributed the recent falling prices to a stream of bad news that battered the digital currency markets throughout the week. Investors were treated to a new round of dire warnings from central bankers and other officials, and watched as the Securities and Exchange Commission (SEC) formally suspended trading for The Crypto Company – a firm that has seen its share value rise by more than seventeen-thousand percent in just three months.
Meanwhile, macro manager Michael Novogratz suspended his plans to launch a digital currency hedge fund and suggested that prices could fall even more. In a post on Twitter, however, he said “Bull market isn’t over. Just pausing.” He also explained the decision to delay the planned hedge fund launch:
“To be clear, we delayed launching a hedge fund with outside investors capital last week because we didn’t like market conditions for new investors. In no way does it mean we are less bullish the crypto markets.”
Despite the setbacks, many observers familiar with the industry continue to be optimistic about the cryptocurrency markets. ADM Investor Services International global strategist Marc Ostwald summed up those investors’ sentiments:
“The enthusiasm hasn’t been destroyed. It’s a volatile market, and investors are hungry for that. They say everything else is boring.”