Bitcoin sheds more as its price depreciates in less than a day. Recently, Bitcoin traded above $8,000. The price of Bitcoin was at $7,215 a piece at 12.59 am ET, according to Coindesk data. The leading crypto experienced a 10.1% drop in the last 24 hours, which is a massive drop since January 2018.
Over the same period, similar losses were realized on other major cryptocurrencies. For example, XRP fell 15.4% to 0.399378, while Ethereum dropped 7.97% to $241.33.
Data from coinmarketcap indicated that the total market capitalization fell more than 8% with more than $21 billion wiped out in 24 hours from 12.42 am ET on Friday.
The last drop is likely caused by algorithmic trading compounding the sudden fall and a combination of profit-taking.
The co-founder of Kinetic capital, Jehan Chu, said:
“We can expect these types of steep rises and drops to continue for some time until institutional investors grow market volume. The key take away from the past few weeks is that with each of these surges, the overall interest and investment continues to expand around a growing core of real blockchain use and adoption,”
The loss comes days after Bitcoin doubled its price in 2019. Amid sizzling tension between China and the US in their protracted trade war, others make the case that Bitcoin is emerging as a global hedge against the stock market movement.
In 2017 a frenzy of interest from retail investors drove prices high, and since then the cryptocurrency industry has struggled to return to its level followed by a dramatic drop in 2018.
Even though Bitcoin sheds more than $1000 in 24 hours, its biggest proponents like Tom Lee see a huge price appreciation in 2019 and beyond. In the same period, the US dollar and other fiat currencies will shrink in value.
Do you think the price of Bitcoin will continue dropping in the coming days?
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