[2017-12-26] ET: This one factor could tell how far bitcoin will plunge

This one factor could tell how far bitcoin will plunge

https://economictimes.indiatimes.com/markets/stocks/news/this-one-factor-could-tell-how-far-bitcoin-will-plunge/articleshow/62248797.cms

While the sharp drop in bitcoin - 25 per cent, or nearly $4,000, overnight (and 33 per cent from the beginning of the week) -- has some predicting the bubble is starting to burst, it may also provide evidence of the cryptocurrency's longevity.

The critical issue is transactions. And if you are looking for where the bottom could be to bitcoin's plunge, that's a pretty good place to start. Tom Lee, one of Wall Street's biggest bitcoin bulls and head of research at Fundstrat, said on Bloomberg TV on Friday morning that anyone who says bitcoin is based on nothing hasn't "done their homework." The increase in bitcoin this year has followed an uptick in the value of transactions. At the start of the year, there were $275 million in daily transactions in bitcoin. Earlier this week, that had grown to more than $5 billion. That's a 1,700 per cent increase, which is more than the rise in bitcoin this year, even before its current tumble.

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