The most popular cryptocurrency Bitcoin hit the worst week in trade last week since 2013 with rates dropped to below USD 12000 on constant warning by regulatory agencies on a likely bubble in the asset class in near term.
However, in today's trading session after Christmas holiday, the digital currency extended its recovery and posted 10% gains and was quoted at around USD 15,049 on the Bitstamp exchange. In Friday's session, the world's biggest cryptocurrency fell to USD 11,159.93 in price and even after recovery in late trade hit the worst week in four years time.
The digital currency has seen a run up in price in the year 2017 with prices soaring 20 folds from below USD 1000 to USD 19,666 on Luxembourg-based Bitstamp exchange as on December 17 and even hitting over USD 20000 on some other exchanges. But since then bitcoin prices are on a downward trajectory with huge falls.
The fall in bitcoin prices is being seen as a natural correction after a run up to huge levels by both analysts as well as investors.
At the same time, warnings have been notified by central banks and other regulatory agencies. Last week, central bank of Singapore warned against cryptocurrency investments and suggested the recent surge in value to be driven by speculation and sharp fall in bitcoin rates is on the anvil.
The second biggest cryptocurrency, Ethereun which fell in line with Bitcoin also recovered to quote around USD 771.