It had been a good 48 hours for cryptocurrencies, with the majority of the main digital currencies posting solid gains to start the week. However, an early morning slide Wednesday put a dampener on investors.
After extending gains early Wednesday, the No. 1 cryptocurrency, Bitcoin
, once again found heavy resistance above $11,000. After reaching an intraday high of $11,044.16, Bitcoin slumped, falling 6% from its high to $10,522.56, down 0.4% on the day.
“While we can buy this rebound for a quick trade, this is most definitely not a good place to invest in BTC for the long term. These rallies are to be sold, not held or chased. Lower-lows are still ahead of us and we haven’t seen the worst of this selloff yet,” Jani Ziedins of Cracked.Market said Wednesday morning.
Despite the sharp reversal, the price of Bitcoin remains in the short-term range of $9,000 to $11,000 and the pullback is just par for the course for some.
“Nothing specific, just the usual volatility,” Charles Hayter, co-founder of CryptoCompare said of the decline. “I think we are looking for more clarity from regulators and we are starting to see it.”
Elsewhere, cloud-based messaging app Telegram, which has raised $850 million in its first round of ICO funding, is said to have tripled the price of its virtual coin to $1.33 each, Bloomberg News reported. The company, founded by Pavel Durov, is hoping to raise as much as $2.5 billion for the offering.
Other cryptocurrency prices followed Bitcoin lower Wednesday. Ether was last down 1.1% at $869.70, Bitcoin cash was in the red by 1.8% at $1,225.48, Litecoin was down 3.7% at $208.47 and Ripple last traded at 92 cents, down 2.7%.
Futures markets finished largely unchanged Wednesday. The Cboe Global Market’s March contract
finished up 0.25% at $10,695 and the CME March contract
closed down 0.1% at $10,645.
In other news, embattled biotech-turned-blockchain company Riot Blockchain
announced Rob Chang as its new chief financial officer. Chang was formerly head of metals and mining at Cantor Fitzgerald.
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