Bitcoin futures are getting burned

Bitcoin futures down over 7% on Tuesday morning.
Bitcoin is down 0.4% against the dollar, extending its recent slump.

LONDON — Bitcoin is starting the new year on the back foot, with investors betting that the digital currency has further to fall.

Bitcoin is close to a one-month low on Tuesday morning, down 0.4% to $13,445.91 at 7.25 a.m. GMT (2.25 a.m. ET). It's a long way off the record high of $19,511 reached on December 18 and around $500 lower than where it was on Sunday. bitcoin

The cryptocurrency has seen a sustained pull back since hitting its all-time high and investors are betting that the slump has further to run. Bitcoin futures, which launched in early December, are down over 7%, according to Investing.com. Institutional buying activity is pricing bitcoin at $13,355 by January 18, as the chart below illustrates:

futures

Bitcoin's price rocketed over 1,500% against the dollar across 2017, while the wider cryptocurrency market rose along with it. The total value of all cryptocurrencies in circulation is over $600 billion, according to data provider CoinMarketCap.com.

Mati Greenspan, an analyst with trading platform eToro who follows the crypto space closely, said in an email on Monday evening: "This new asset class has probably seen the quickest rise in value and market capitalization of any asset class in any year in history. The total value of all cryptocurrencies in circulation has risen by 3,137% from January 1st to December 31st.

"The amazing thing is that the rate of acceleration has continued to increase as the year progressed. Even the massive pullback that we saw in the week leading up to Christmas seems like a tiny blip when we look at the big picture."

Join the conversation about this story »

NOW WATCH: The 5 issues to consider before trading bitcoin futures