Crypto-currency has taken a big hit over the last week, with the price of one bitcoin dropping to as low as $5,869.
The value of the cryptocurrency was hit in late January by an outbreak of a virus that forced a shutdown of the Bitcoin exchange Mt Gox.
The digital currency has since rebounded to near all-time highs, with prices trading above $6,000 on Friday.
But some investors say the current volatility in the digital currency is putting it at a disadvantage against other cryptocurrencies.
“Bitcoin is no longer the world’s best crypto-currency,” wrote one investor on Reddit.
“Its far from the best, but its close enough.”
Bitcoin has seen an exponential increase in value over the past year.
The cryptocurrency’s price has jumped more than 400 percent since its January peak of $5.3 billion.
And its price has been driven up by a massive surge in demand for its digital tokens.
For the past week, bitcoin’s price had dropped to around $4,500 before rebounding to $5 at the end of February.
That’s when Mt GoeX, a Japanese bitcoin exchange, announced that it would be shutting down on February 20.
The announcement sparked panic among the cryptocurrency community, with many holding out hope the virtual currency could soon be back to its previous levels.
But investors and traders quickly took to the market to see what the future holds.
The next big step in the Bitcoin boom has been the increase in demand.
Investors have flocked to the cryptocurrency after Mt Goad’s announcement, buying hundreds of thousands of bitcoins in the process.
Bitcoin prices are now at more than $7,500 per coin.
“It’s really starting to show that Bitcoin is back to where it was in January,” said Jason Blanchard, chief market strategist at bitcoin hedge fund Gemini.
“The volatility is starting to ease.”
Blancharons hedge fund is also betting that a surge in Bitcoin demand will eventually bring the digital coin back to $6.
“If Bitcoin is going to grow, it’s going to come from the top of the pyramid,” he said.
“But it’s a very steep price to pay.
And I think that the market is still going to be looking for the next big thing.”
Bitcoin futures trading has been on the rise since Mt Gx shut down, with futures prices topping $2,000 in the past 24 hours.
That surge has helped bitcoin become more accessible to investors.
But not everyone is happy about that growth.
“People are jumping on the bandwagon,” Blanchart said.
For now, bitcoin is still viewed as a speculative bubble.
“In the long run, people are still going buy bitcoin because they believe in the future,” Blansant said.
The bitcoin market is currently trading at $4.7 billion, according to Bitstamp, a bitcoin trading platform that tracks the digital asset.
Bitcoin is currently valued at around $6 billion.