The price of bitcoin dropped $ 600 in just 30 minutes to bring its value back below $ 10,000.
The flash crash resulted in around $ 10 billion being removed from the cryptocurrency’s overall value and called into question recent positive price predictions.
In the hours following the lightning crash, which took place on Wednesday night, the price of bitcoin continued to fall steadily and is currently trading at around $ 9,500.
The price of Bitcoin remains well above where it started the year, as it traded below $ 4,000. But it is far from its record price of $ 20,000, reached at the end of 2017.
The cryptocurrency’s notorious price volatility has seen its value fluctuate between $ 9,000 and $ 13,000 in recent months, although it is experiencing a period of relative stability before the most recent drop.
Latest price crash comes after market analyst predicted bitcoin’s ‘new normal bottom’ is now $ 10,000, after surviving multiple mini-dips that failed to bring its price down below this milestone.
According to Nigel Green, CEO of financial advisory firm deVere Group, it’s only a matter of time before bitcoin returns above that level.
“Looking at its performance this year, I think the new normal bitcoin floor price is $ 10,000,” he said. The independent.
“It bounces at this price. If it fluctuates below that level, it bounces back again. We saw it in action on Monday when bitcoin hit $ 10,500 in a matter of minutes.”
Mr Green maintained his recent prediction that the price of bitcoin would hit $ 15,000 in the near future, citing geopolitical uncertainty, technical improvements to the network, and growing public awareness of cryptocurrencies.
“Cryptocurrencies, and especially bitcoin, are increasingly a part of mainstream finance,” he said.
“It is increasingly accepted around the world that cryptocurrencies are not just the future of money, but more and more money today.”
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