Ether is a new cryptocurrency which has nearly tripled its value.
Although Bitcoin suffered its biggest ever fall since early 2015, with investors selling the crypto currency on worries about its future, it quickly regained its composure.
Having touched a zenith of $1,350 on the Bitstamp exchange on March 10 2017, on speculations that the currency could soon be approved for trading in the U.S., bitcoins soon started moving on a downward slope.
The fall accelerated last Thursday when it hit its 5-week low nadir of $944.36 on Saturday. However on Monday, it regained traction and was seen trading 2.5% higher at $1,050 by 1815 GMT.
Bitcoin experts have attributed the steep fall to a longstanding and intensifying row over if and how to increase the capacity of the “blocks” that bitcoin transactions are processed in, in order to ensure that there are no transaction delays during finalizing.
“The bitcoin scaling debate is a risk for the network and highlights core issues in terms of governance and this is where more nimble crypto competitors see advantages in fleshing out their capabilities sooner,” said Charles Hayter, CEO of digital currency analysis website Crytocompare, in London.
While the bitcoin was plunging to its nadir, a new rival cryptocurrency, ether, was gaining ground.
According to experts, ether, the digital currency behind Ethereum, a project which has more potential than bitcoins, according to experts, has nearly tripled in value jumping by a record $45.
With traders selling bitcoins and buying ether, bitcoins fall was only exacerbated.
“Traders in the space are looking for better returns in the more risky and nascent cryptos such as Dash, Monero and Ethereum (and are) looking to replicate the extraordinary returns that bitcoin saw in its early days,” said Hayter.
Earlier this month, U.S. regulators dashed the hopes of Tyler Winklevoss and Cameron’s bitcoin ambitions by rejecting their application to list an exchange-traded fund linked to the digital currency.