Bitcoin hits new low, but analysts say it won't last long

Bitcoin fell below $12,000 Tuesday, reaching a new six-week low, according to CNBC.

Bitcoin's value dropped after South Korea's Finance Minister Kim Dong-yeon said the country was still considering regulating digital coins. He told a local radio program "the shutdown of virtual currency exchanges is still one of the options" the government has, according to CNBC.

South Korea is not alone in issuing a cryptocurrency crackdown — authorities in China are planning to block domestic access to Chinese and offshore cryptocurrency platforms that enable centralized trading.

However, analysts do not seem too afraid. In fact, some are predicting a bitcoin rally.

Kay Van-Petersen, an analyst at Saxo Bank, thinks the digital coin could reach between $50,000 and $100,000 this year, according to a separate CNBC report. In December 2016, Mr. Van-Peterson correctly forecasted that bitcoin would reach $2,000 in 2017. At that time, bitcoin was valued below $900.

He explained bitcoin often trades around a certain level before it re-rates even higher.

"I wouldn't be surprised if it's something we are seeing. It's kind of building a foundation, then will re-rate a bit higher," Mr. Van-Petersen added.

More articles on cybersecurity:

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