Bitcoin briefly fell below $2,500 yesterday, hitting its lowest price since the cryptocurrency rebounded last Thursday.
The digital currency saw a sharp increase on Thursday after miners backed a new mechanism designed to solve the cryptocurrency’s scaling issue.
Here is the latest Bitcoin news, prices and live updates (All times BST).
12.30pm: Bitcoin rose to $2,536.10 by 12.30pm after a slight dip this morning. Bitcoin opened at $2,591.22 today, according to CoinDesk.
11.30am: Bitcoin fell to $2,485.47 just before 10pm last night. This was the lowest price since Thursday.
Last Thursday more than 80 percent of developers backed BIP 91, a bitcoin improvement proposal. Some welcomed the BIP 91 lock-in a victory a “new dawn” for bitcoin.
The move saw miners agreeing to cement the first part of a larger effort to upgrade bitcoin, called Segwit2x.
Alex Sunnarborg, research analyst at CoinDesk, told CNBC: “I believe the market is currently somewhat torn between the optimism around BIP 91 locking in, which could lead to SegWit activating if all goes smoothly, and the fear of the second half of SegWit2x proposal, the 2MB block size hard fork, still being contested.”
Tuesday July 25
11pm: Prices of the bitcoin currency fall. Prices of the most prominent digital currencies tied to the bitcoin and Ethereum networks fell sharply on Tuesday.
The majority of miners, the computer operators who maintain its blockchain network, backed a software upgrade that will boost the speed of processing transactions.
The decrease in prices today could have been linked to those developers who are behind a split in the bitcoin blockchain.
A major mainstream investment company, Rothschild Investment Corporation, has embraced cryptocurrency by investing in bitcoin.
1.20pm: Bitcoin needs a few more ‘swings’ before trend continues
According to Sheba Jafari, head of technical strategy at Goldman Sachs, bitcoin needs a “few more swings” before the upward trend continues.
“Anything above 3,000 (Jun 13th high) will suggest potential to have already started wave V, which again has a minimum target at 2,988 and scope to reach 3,691 (the latter being a preferred target as this assumes a new high),” Ms Jafari wrote in a note to clients.
Goldman Sachs said Bitcoin is “still within the limits of a well-defined range”, adding: “At this point, it seems reasonable to assume that the market is in a corrective process until there’s been real evidence of an impulsive advance.”
11am: Bitcoin bounces back from price crash
Bitcoin has recovered from its recent crash, with the price of the cryptocurrency reaching $2,790 at 2am BST this morning before falling slightly to $2,691 as of 11.30am BST.
This is close to the high of $2,855 that was recorded on Sunday.
The price has stabilised after Bitcoin miners activated BIP91 – a software update aimed at solving Bitcoin’s scalability problem.
On Saturday, BIP91 was activated after 93 per cent of miners signalled their support – well above the 80 per cent threshold that was needed.
The Bitcoin market crashed between July 12 and July 16 amid fears that the update would not be accepted, which would have triggered a user-activated soft fork splitting the cryptocurrency into two assets.
10am: Purse.io “thrilled to get past this impasse”
Andrew Lee, head of bitcoin startup Purse.io, said: “We’re thrilled to get past this impasse.”
In further good news, Bank of America Merrill Lynch has predicted that Bitcoin will go “mainstream” once banks start accepting it.
A “crucial hurdle’ for the cryptocurrency will be whether institutions accept it as collateral, the bank’s commodity and derivatives strategist Francisco Blanch wrote in a report.
Bitcoin’s volatility is very high compared to the euro, the yen or even gold