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Ethereum and bitcoin higher but sentiment remains bearish

Published 07/12/2017, 03:30 PM
© Reuters.
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Investing.com – Ethereum rebounded from a slump in the previous session while Bitcoin traded roughly above breakeven amid bearish calls from analysts warning both cryptocurrencies face further downside pressure.

On the U.S.-based GDAX exchange, BTC/USD fell to $2,403.5, down $49.4 or 2.16%. Bitcoin has struggled to regain momentum since hitting a peek of $3,000 in June.

Meanwhile, Ethereum rose to $218.19, up 10.45%, after dropping below $200 for the first time since May 30, in the previous session amid warning from analysts of further correction in cryptocurrency markets.

Some market participants, however, have been quick to point out that investors should not be deterred by the current volatility in the cryptocurrency markets, as large gyrations in the price of new asset classes are natural, as investors attempt to discover the true value of these assets.

"It's not a problem," he said on the sidelines of the Rise conference in Hong Kong. "If you think about it, the volatility is natural for an asset class that is so new. There's no price discovery for it (yet)."

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