Anybody who believed that the Bitcoin price doesn’t show any signs of stopping was right, at least for a few hours, as the world’s most popular cryptocurrency managed to reach $11,000. To be more specific, according to Fortune, we’re talking about $11,300 on Wednesday, which represents an increase of over $3,100 in a week.
This happens despite several important financial figures expressing their concerns about an asset with a relatively limited regulatory clarity. Considering this, it can easily be said that the rise of the cryptocurrency was absolutely stunning!
It didn’t last for long…
However, Bitcoin declined more than $2,000 in just a few hours, during the same day. This can be called one of the sharpest drops from the latest weeks, but it’s also a reminder of the volatility of the cruptocurrency.
Back to the coin, after yesterday’s crash, its value went briefly below $9,000 on at least one exchange, even though, initially, it looked like it recovered some value quickly after. At 3:17 P.M. EST, it was trading at $9,852.54 at Coindesk. Also, it kept recovering value throughout the day, reaching approximately $10,100 around 5 P.M.
Despite this sudden (and relatively big) declined, Bitcoin is still worth more than last week, when it was trading for around $8,000, not to mention one year ago.
It will get a lot of people talking!
It’s also worth mentioning that yesterday’s event will definitely fuel more declarations coming from skeptics, who warned investors multiple time that this is actually a dangerous speculation. And yes, social media also reacted quickly after the price decline, a lot of people calling it – not surprisingly – a bubble that will burst soon.
“Demand pressure is essentially driven by two things. Firstly, the increasing awareness by both the public and investors that cryptocurrencies are here to stay, and secondly, the increasing professionalization of cryptocurrency trading,” said Daniele Bianchi, an Assistant Professor in the Finance Group at the Warwick Business School, when asked about the value variation.