Yet extreme volatility is also one reason why the virtual currency has failed to catch on as a global medium of exchange, as intended by its pseudonymous creator. Erratic moves have also deterred institutional investors, whose concerns about cryptocurrencies range from uncertain regulation to exchange hacks and market manipulation.
“Events such as today’s will probably be seen negatively, or viewed as this market doesn’t conform to the trading of traditional instruments,” said Dave Chapman, CEO of crypto exchange ANXONE. “We have to realize that this asset class is only a decade old, and it only started getting mainstream attention five years ago.”
This article provided by Bloomberg News.