Date
11 December 2017
Amid fears of a bubble, bitcoin has turned more volatile on cryptocurrency exchanges. Photo: Reuters
Amid fears of a bubble, bitcoin has turned more volatile on cryptocurrency exchanges. Photo: Reuters

Bitcoin loses over a fifth of its value in less than 24 hours

Bitcoin slid to as low as US$9,000 in volatile trade on Thursday, losing more than a fifth of its value since hitting an all-time high of US$11,395 the previous day, Reuters reports.

The cryptocurrency fell as much as 8 percent on Thursday on the Luxembourg-based Bitstamp exchange to hit US$9,000, marking a fall of well over US$2,000 in under 24 hours.

It then edged back up to trade at around US$9,400 in the hour that followed, still down roughly 4 percent on the day.

One market-watcher attributed the fall to outages in bitcoin exchanges and the heavy price surge of recent times.

“Naturally a few of the early bitcoin traders are taking some profits off the table,” Charles Hayter, founder of CryptoCompare.com, told Reuters.

“Volatility is in the market at the moment and that means both positive and negative moves.”

Bitcoin’s latest fall has tempered an astronomical rise for the cryptocurrency in recent months. The virtual currency was up almost 1,100 percent year-to-date on Wednesday. 

The rise has been fueled by signs that the digital unit is slowly gaining traction in the mainstream investment world, as well as by increasing awareness.

Several large market exchanges including Nasdaq, CBOE and CME have said they are planning to provide futures contracts based on bitcoin.

Bitcoin’s rapid ascent has prompted warnings from a stream of prominent investors that it had reached bubble territory.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe