After hitting levels above $20,000 per coin just last week, Bitcoin saw a massive sell-off as fears of a bubble began to loom large.
The price reached an all time high of $20,078 on December 17, but saw an approximate 40% drop in just three days, once dipping to as low as $11,833 on December 22.
However, in spite of fears, the market has rebounded again, and is now stabilizing above $14,000. At press time, Bitcoin was trading at an average of $15,147, according to Coinmarketcap.
The recovery so far seems to have justified the approach of HODLers (‘Hold On for Dear Life’) who refuse to sell in times of market fear.
Varying responses
Nevertheless, the drop-off saw hedge-fund manager Mike Novogratz delay the issuing of his hedge-fund, citing the substantial swings in the market as well as potential conflicts of interest as the cause.
On the contrary, however, Kain Warwick, Founder and CEO of Havven, an asset-backed cryptocurrency, made it clear that the rebound should have been expected, telling Cointelegraph:
“Bitcoin rebounded because there is significant support at psychological levels like 10k, so once the price stopped falling people came in to buy the dip.”