Bitcoin\u2019s rise was meteoric this week – and its decline has been just as swift.<\/p>\n
It\u2019s easy come, easy go in the crypto world, where a frenzy over Bitcoin pushed its price to nearly $14,000 on Wednesday, its highest level since January 2018.<\/p>\n
The largest digital asset then reversed course in a matter of minutes after a prominent cryptocurrency exchange reported an outage. The retreat accelerated Thursday and put the coin\u2019s price back to nearly the same level as just five days ago.<\/p>\n
The jump in prices brought back memories of the crypto bubble that burst at the end of 2017, when Bitcoin and other cryptocurrencies – beset by regulatory setbacks and fraud-related issues – fell from grace.<\/p>\n
Bitcoin\u2019s price, for instance, languished around $3,600 just six months ago.<\/p>\n
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.<\/p>\n
Things turned parabolic earlier this month when Facebook Inc. unveiled plans for its own digital currency — many proponents cited the move as long-sought validation of the potential digital assets have to drastically alter the global financial system.<\/p>\n
But Thursday\u2019s reversal prompted one of Bitcoin\u2019s biggest proponents, Mike Novogratz, to lament on not having taken more money off the table before the coin lost nearly all its gains.<\/p>\n
That may have contributed to its swift demise, according to John Spallanzani, portfolio manager at Miller Value Partners.<\/p>\n
It\u2019s a very \u201ctight-knit market,\u201d said Spallanzani. \u201cMost likely Novo hitting bids spread like wildfire.\u201d<\/p>\n
Bitcoin dropped as much as 19% on Thursday, paring the loss to 16% at the end of the day. It was up 4.2% to $11,137 as of 10:50 a.m. in Hong Kong on Friday.<\/strong><\/p>\n Volatility is near the highest levels since early 2018, when the crypto bubble was bursting.<\/p>\n \u201cIt seems the crypto market got a bit too hot yesterday and is now cooling down,\u201d wrote Mati Greenspan, senior market analyst at trading platform eToro, in a note.<\/p>\n \u201cWhat an incredible market where the price can crash about 15% in less than an hour and bring us back to the highs of the previous trading day.\u201d<\/p>\n 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%.<\/p>\n
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