Bitcoin’s (BTC) rise was meteoric this week and its decline has been just as swift.
The speculation frenzy over Bitcoin pushed its price to nearly $14,000 Wednesday, its highest mark since January 2018.
Bitcoin, the largest digital asset reversed after a prominent cryptocurrency exchange reported an outage Wednesday. The retreat accelerated Thursday and put the coin’s price back to nearly the same mark as it was just 5 days ago.
The spike in prices brought back memories of the crypto bubble that burst at the end of Y 2017, when Bitcoin and other cryptocurrencies fell from grace. Bitcoin’s price hung around $3,600 just 6 months ago.
Crypto Bulls were heartened this year after numerous Wall Street mainstays showed increased interest and wider acceptance of cryptocurrencies and their underlying blockchain technology, helping to push prices higher.
The market went parabolic earlier this month when Facebook (NASDAQ:FB) unveiled plans for its own digital currency Libra, many proponents cited the move as long-sought validation of the potential digital assets have to alter the global financial system.
But Thursday’s reversal prompted 1 of Bitcoin’s biggest proponents to lament on not having taken more money off the table before the coin lost nearly all its gains.
Bitcoin dropped as much as 19% Thursday, paring the loss to 16% at the end of the day.
It was up 4.2% to $11,137 as of 10:50a in Hong Kong Friday.
Volatility is near the highest levels since early Y 2018, when the crypto bubble was deflating.
Alternative coins also fell Thursday, with both Ether and Litecoin dropping 14%. The Bloomberg Galaxy Crypto Index, which tracks some of the largest digital assets, dropped 19%.
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