Bitcoin plunges more than 25% in 24 hours; others follow too
TOKYO: Bitcoin’s stratospheric rise hit a major bump Friday.
The value of the so-called cryptocurrency, which had surged in recent weeks, plunged more than 25% in a 24-hour period, to $11,833, according to Coinmarketcap.com. The value of other digital currencies followed the tumble, with ethereum dropping more than 35% in the same time frame, to $543.76, and bitcoin cash falling 44.3%, to $1,938.36.
Bitcoin’s value has been sliding throughout the week after reaching a high of $19,511 on Sunday, Coinmarketcap.com says.
To many, the steep slide was inevitable and a reality check of sorts.
“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London.
“A lot of traders have been waiting for this large correction.”
“With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period.”
Bitcoin has had a difficult week. As warnings about the risks of investing in the volatile and unregulated market have continued to sound louder — with Denmark’s central bank governor calling it a “deadly” gamble - there have been more worries over the exchanges on which cryptocurrencies are bought and sold.
Investors have been flocking to bitcoin and other cryptocurrencies. Companies have even been rebranding themselves in an effort to capture some of the attention being lavished on virtual currencies and the blockchain technology that provide their foundation.
“Trading in bitcoin is akin to gambling, so its movements don’t follow logical patterns,” said Takashi Hiroki, chief strategist at Monex Securities in Tokyo.