Investing.com – Ethereum and Bitcoin retreated from highs on Thursday, amid a lack of buying conviction for cryptocurrencies among investors, as analysts warned that the number of merchants accepting bitcoin is ‘virtually zero’.
On the U.S.-based GDAX exchange, BTC/USD fell to $2,323.7, down $69.6 or 2.91%. while Ethereum sank 10.26% to 195.40.
"Bitcoin owners are reluctant to use the cryptocurrency given its rate of appreciation," analysts at Morgan Stately wrote in report. "Bitcoin acceptance is virtually zero and shrinking,"
Some market participants, however, remained adamant 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," Bobby Lee, CEO of Chinese bitcoin exchange BTCC said. "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)."