Bitcoin had its worst start to a year ever
- Bitcoin declined by more than 50% against the dollar in the first quarter of 2018.
- It's the digital currency's worst ever start to a year and its second-worst quarter on record.
- Fears of regulation, declining Asian volumes, and an "unsustainable" price run up at the end of last year have all contributed to a loss of momentum.
LONDON - Bitcoin fell by more than 50% against the dollar in the first three months of 2018 to record its worst start to the year ever.
CoinDesk reports that the cryptocurrency recorded its worst start to the year ever in the first quarter and its second-worst quarter on record. Bitcoin's worst three-month spell came in the third quarter of 2011 when it declined by 68% against the dollar.
Bitcoin surged to an all-time high of close to $20,000 in mid-December but began rapidly declining at the start of the year amid fears of a regulatory crackdown and declining Asian buying volumes. Bitcoin was below $10,000 by mid-January.
The digital currency has struggled to gain much momentum since then, trading in a range between $10,000 and $7,000 in the months since. Bitcoin ended March around $6,926, more than half the $13,412 level it started January at.
Nigel Green, the founder and CEO of financial services firm deVere Group, which offers a cryptocurrency trading app, said in an emailed statement: "Towards the end of last year, crypto values went too high, too fast - and, of course, it was unsustainable
"Since then, in this first quarter, there's been a serious price correction of most major cryptocurrencies.
"It has been this correction that's been mainly responsible for an evolution in investor attitude. I believe that now the overwhelming majority of investors do not view cryptocurrencies as a way to make a fast buck, as perhaps previously many more might have done."
Bitcoin is down 0.69% against the dollar to $7,370.51 at just after 8.00 a.m. GMT (3.00 a.m. ET) on Wednesday.