Bitcoin Loses A Third of Its Value in 24 HoursDecember 22, 2017 9:17 pm
The cryptocurrency bitcoin fell to below $11,000 on Friday, losing almost a third of its value in only 24 hours, according to data from CoinDesk.
CNN also reported that while it rebounded slightly to $12,000, but still had a 25% loss in value compared to Thursday and even just days before on Sunday when the price was almost at $20,0000.
Bitcoin had been climbing steadily all year, rising by more than 1,000% since January.
Thursday also had a bitcoin spinoff called bitcoin cash that was suspended from one of the most popular exchanges after there was possible insider trading, but on Friday the U.S. markets regulator stopped trading in bitcoin stock.
A South Korea-based virtual currency exchange was also forced to close this week after being attacked by hackers for the second time in two months.
The falling prices and security questions have raised concerns about the reliability of cryptocurrency markets, which are unregulated by governments or central breaks, but some also say that the cryptocurrency will make a large rebound early next year.
“A correction like we are witnessing today is hardly surprising,” said Dave Chapman, managing director of Hong Kong cryptocurrency trading platform Octagon Strategy.
The sudden dip threatens an otherwise incredible year for the cryptocurrency which only one year ago was worth less than $1,000, but as more mainstream investors became open to the idea of trading with the cryptocurrency, it became more widely accepted.
Earlier this month two major U.S. financial exchanges began trading in bitcoin futures which would give it more influence with institutional investors.
Federal Reserve Chairwoman Janet Yellen said the cryptocurrency markets were “highly speculative” and was among a number of high-profile figures in economics to urge caution for bitcoin.
Shane Chanel, a financial adviser at Australian investment firm ASR Wealth Advisers, said that investors may actually begin shifting their focus to other currencies aside from bitcoin net year, “I feel the cryptocurrency madness is only beginning,”
–WN.com, Maureen Foody