Bitcoin’s rise was meteoric this week -- and its decline has been just as swift.
It’s easy come, easy go in the crypto world, where a frenzy over Bitcoin pushed its price to nearly $14,000 on Wednesday, its highest level since January 2018. The largest digital asset then reversed course in a matter of minutes after a prominent cryptocurrency exchange reported an outage. That’s put the coin’s price back to nearly the same level as just five days ago.
The quick reversal prompted one its biggest proponents, Mike Novogratz, to lament on not having taken enough profits off the table before the coin lost nearly all its gains. Bitcoin dropped as much as 17% on Thursday and was trading around $10,640 as of 1:22 p.m. in New York. Volatility is near the highest levels since early 2018, when the crypto bubble was bursting.
“It seems the crypto market got a bit too hot yesterday and is now cooling down,” wrote Mati Greenspan, senior market analyst at trading platform eToro, in a note. “What an incredible market where the price can crash about 15% in less than an hour and bring us back to the highs of the previous trading day.”
This article was provided by Bloomberg News.