Having reached trading peaks of over $1,230 at Mt.Gox, Bitcoin prices have started to correct once again and have hit the low of $863 in early hours of trading today indicating that the virtual currency might be in for yet another tumble and the decline may be attributed to the recent Sheep Marketplace scam that left users dry thanks to theft of over 39,000 Bitcoins valued at over $40 million.
Bitcoin volatility isn’t new and those watching the prices of the virtual currency closely will definitely recognize the current trend as profit making scenario wherein those who amassed hundreds or even thousands of Bitcoins are trying to free some cash and profit from the recent upsurge.
Currently trading at an average of $1,027, chances are that Bitcoin will shed another $300 in correction just like it happens in the stock market indices. Having leveled out at around $650-$700, the virtual currency may again hit a new high over well over $2000 before its next crash. This is how the Bitcoin rollercoaster takes its user for a ride.
Profit making is one scenario, but for those who are keeping tabs on the Bitcoin current affairs would know that Sheep Marketplace, a Silk Road like underground marketplace, turned out to be a scam and either the admins or one of the vendors made away with trunk-full of Bitcoins valued at a whopping $40 Million. Now the virtual currency isn’t definitely worth anything if not turned into some real cash and if we look at the trading volumes on Mt.Gox, it is likely that the scammers who hit the jackpot through Sheep Marketplace may be selling off their booty.
Whatever the case may be, serious Bitcoin investors are likely to ride this one out and those looking for entry may find this or the next few days as particularly lucrative.
