Bitcoin tumbles to $275 before climbing back above $300

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Investing.com - Bitcoin prices fell below the key $300-level on Monday before retracing losses to turn higher as investors returned to the market to seek cheap valuations.

Bitcoin (BTC/USD) tumbled to a daily low of $275.00 on Slovenia-based BitStamp, a level not seen since November 2013.

BitStamp prices recovered to last trade at $316.98 during U.S. morning hours, up $7.24, or 2.34%.

The price of a bitcoin on Bulgaria-based BTC-e rose $15.96, or 5.24%, to trade at $320.65, while prices on Singapore-based itBit tacked on $6.31, or 1.97%, to trade at $326.55.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency advanced 1.03% to trade at $322.94.

Bitcoin sank by as much as $99.62, or 26.6%, over the weekend to hit an 11-month low, as bearish chart signals and concerns about possible regulation of the virtual currency weighed.

The downward move came amid heavy volume but without any obvious trigger.

A number of traders and market analysts attributed the plunge to price manipulation by short-term profiteers who are deliberately driving prices down to eventually buy them back at lows.

Meanwhile, euro-denominated Bitcoin prices (BTC/EUR) dipped €0.30, or 0.12%, to trade at €257.70 on U.S.-based Kraken Exchange.

Elsewhere, yuan-denominated Bitcoin prices picked up CNY112.33, or 5.88%, to trade at CNY2,022.44 yuan on Beijing-based OKCoin, while prices on Shanghai-based BTC China advanced CNY52.95, or 2.69%, to trade at CNY2,023.75.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

Prices of the virtual currency are down nearly 55% from its June highs of $683, and roughly 75% below its all-time high near the $1,240-level hit in late November 2013.

Bitcoin's market cap is down to just $4 billion, after peaking at $13.9 billion in December 2013, even as the virtual currency has been getting more popular with merchants and retailers in recent months.

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This article appears in: Investing , Forex and Currencies

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