Bitcoin drops to under $13,000, could leave newbie investors holding the bag

Dropping almost as suddenly as it rose over the last few weeks, Bitcoin is now trading at under $13,000. According to CoinDesk, the cryptocurrency is now trading at around $12,820 as of 07:36 UTC, after dropping even lower to $12,500 during the trading day.

Is that a reality check for new investors in Bitcoin? That’s what Stephen Innes, head of trading for Asia Pacific at Oanda Corp., thinks:

“At the heart of the matter was a frenzied demand for coins with limited supply has now led to unsophisticated investors holding the bag at the top.”

Bank of Japan Governor Haruhiko Kuroda said on Thursday that Bitcoin isn’t acting like a normal security, or means of payment, but rather being used for speculation.

And speculating on securities is always dangerous territory if you don’t know what you’re doing. That also means several investors who got in at above the current levels are left holding the bag until the crypto once again moves above their buying price. And that could be a long wait.

Despite the obvious volatility of Bitcoin, banking institutions like Goldman Sachs have shown a clear interest in trading cryptocurrencies. Earlier today it was reported that the investment bank is mulling over opening a trading desk for cryptos including BTC.

Hopefully, such keen interest from major banks and financial institutions will help create a more regulated environment for the now-elusive Bitcoin, as well as other cryptos like Bitcoin Cash, Ethereum and so on.

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