Bitcoin price dips after record high

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Bitcoin’s price has declined in the past 24 hours after hitting a record high earlier this week.

The price of bitcoin has dropped by more than US $2,000 (AU $2,606) since the start of the day (UTC), down about 15 per cent from a record high price on Monday.

The bitcoin price was sitting at $16,914.85 at 4.22am UTC (Wednesday afternoon Australian time), but it hit a low of $15,577.74 at 12:41am UTC after opening at $18,960.52, according to data from the Coindesk exchange.

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It's a contrast to the record high bitcoin price on Monday when it stopped just short of $20,000.

The price of Bitcoin plunges on December 20 UTC
The price of Bitcoin plunges on December 20 UTC.
Coindesk

The value of bitcoin can swing sharply. In mid-2016, one was worth $457.04, and its value has risen steadily over the past 12 months. However, bitcoin value plunged by 23 per cent against the US dollar in one week in January and fell by the same amount over 10 days in March. 

The most decline comes as other cryptocurrencies, such as REP, posted gains. REP rose about 13 per cent during this morning's trading session and over 52 percent during the afternoon session, according to Coindesk.

Lincoln Indicators analyst Elio D'Amato said lessons could be learned regarding bitcoin investment, and warned buyers to beware of the potential risks.

"We're telling our members that if they want to play, do so, just remember that it is with a very small portion of their net wealth and that they understand the level of risk that they're undertaking," Mr D'Amato said.

Snapshot of Bitcoin's US value
SBS News

"But of course the easy money has been made, whilst it would have been great to hold them at $1 now at $23,000 Australian, for you to double your money it has to go up to $46,000... that's a pretty large jump.

He said those thinking about investing in bitcoin now may have left it a bit too late.

"Possibly [you] may have missed the boat if you wanted to make some easy money but by all means, if you want to engage in it, do so with your eyes wide open."

With AAP

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