A Bitcoin price has fallen by more than 50 per cent since the start of the year, but analysts are confident the cryptocurrency will continue to rise, given the fundamentals.
The price of a single Bitcoin on CoinDesk is currently hovering around $30.57, a significant drop of more than 5 per cent on a daily basis, according to data from Bitcoincharts.com.
The latest move comes just weeks after a Bitcoin exchange operator was hit with a lawsuit over charges it did not provide a service to customers.
In June, CoinLab said it would close its doors and shut down its services following the death of founder Aaron van der Zande.
Bitcoin, meanwhile, has seen its value fall from a high of $1,700 on November 19, 2013 to below $5,000 today.
Its price has recovered significantly since the announcement, and Bitcoinchart currently has a market cap of $8.3bn.
The bitcoin exchange company said it was going to close down the service on November 20, and its services would be suspended until January 20.
“It is with regret and regret that we must close down our Bitcoin Exchange,” the company said in a statement.
“It was not our intention to shut down our business but unfortunately, due to the unfortunate circumstances of Aaron van de Zande’s passing we have to make this difficult decision.”
We are working with CoinLab and their legal counsel to work out the details and move forward.
“The company added that the exchange would be closed on January 20 for the next two weeks, and it would be back up and running in two weeks.
The loss of van der Zoegen’s business was a major blow to bitcoin, which has gained in popularity and value in recent years.
In December, a group of major investors including former Citigroup chief executive Brian Johnson and Goldman Sachs founder Paul Tudor Jones took a majority stake in bitcoin exchange Coinbase, which at the time was valued at $4.5bn.
Coinbase was later forced to shut its doors.
The company said at the height of the bitcoin bubble, it had $100m in daily trading.
However, the Bitcoin price is now at a low of around $1 per coin, which suggests the cryptocurrency is heading towards a new low.”
There are going to be lots of people who will take Bitcoin as it has the potential to do very, very big things,” David Lattner, an analyst with investment firm Cantor Fitzgerald, told CoinDesk.”
The key thing is to not get ahead of yourself, and stay focused on what you can do and make sure you get the right team and a team that’s focused on delivering what they say they’re going to deliver.