Bitcoin resumed declines on Jan 13 as the digital coin heads for its worst week since March last year, casting doubt on the outlook for the cryptocurrency boom.

Bitcoin fell as much as 6.8% to about US$32,359 ($42,817) before paring some losses, according to a composite of prices compiled by Bloomberg. The largest cryptocurrency hit a record of almost US$42,000 on Jan 8 before tumbling to a low around US$30,300. The Bloomberg Galaxy Crypto Index fell as much as 7.1%.

The price swings evoke memories of Bitcoin’s December 2017 bubble that was followed by a rapid collapse. They also test recent narratives, such as the argument that Bitcoin is maturing into a hedge against dollar weakness and inflation risk, and attracting longer term investors.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook