Traders Cautious as Bitcoin Plunges to a New Yearly Low: Can it Recover?

On December 7, the Bitcoin price achieved a new yearly low, as the valuation of the crypto market fell by $16 billion within a 24-hour span.

Bitcoin Price Struggles to Recover from New Yearly Low

Bitcoin (BTC) fell to as low as $3,210 on fiat-to-cryptocurrency exchanges like Bitstamp and Coinbase, which led other major cryptocurrencies and low market cap digital assets to fall by around 15 to 20 percent against the U.S. dollar.

Since then, the Bitcoin price has rebounded from $3,210 to $3,455, by more than seven percent within merely 12 hours.

However, traders are cautious in regards to the short-term price trend of the dominant cryptocurrency given the intensity of its recent fall and the volatility the market has shown throughout the past two weeks.

Factors and Trends

Positive developments continue to surround the cryptocurrency market as large financial institutions in the likes of Nasdaq and Fidelity make big bets on emerging infrastructure providers like ErisX, a…