Bitcoin made waves this morning when its price plunged to $9,186, dropping below the $10,000 mark for the first time in six weeks and shedding half its value from its December high of $19,511. Panic set in almost immediately as investors worried Bitcoin’s bubble was about to burst.
Bitcoin made waves this morning when its price plunged to $9,186, dropping below the $10,000 mark for the first time in six weeks and shedding half its value from its December high of $19,511. Panic set in almost immediately as investors worried Bitcoin’s bubble was about to burst.
The upheaval arose amid anxiety about South Korean regulation as officials threatened to shut down cryptocurrency exchanges in the country. A massive sell-off on Tuesday left the value of Bitcoin at its lowest since November. Experts predicted that the price would continue to drop, possibly going as low as $5,000 by next week. However, the cryptocurrency giant demonstrated a surprising resilience. Over the next four hours, Bitcoin rebounded $1,600, and by 3:44 p.m EST had climbed back above the $10,000 mark, reaching a price of $10,780.
The next time Bitcoin plummets, it might be prudent to stay calm and avoid overreacting. Wednesday’s roller coaster ride shows that erratic falls and climbs comes with the territory. It is difficult to anticipate how the cryptocurrency will react in the face of turmoil.