Bitcoin prices dropped yesterday from $2800 down to $2460, sparking concern and speculation across the cryptocurrency community.
The large drop in value has come alongside the largest Bitcoin Bull run in the currencies history, it caused panicked posts on social media with one Reddit user posting;
“What the hell happened with the drop from 2800 to 2460?!!!!!” – TakinBackMyLove, a distressed Reddit user.
Many other new Bitcoin users, drawn to cryptocurrency investment by the current upward cycle of the market, also voiced their concerns while Bitcoin veterans remained calm, having seen this all before, and much worse.
Whatever happens, this is healthy guys. We need this. Only through this process can we achieve enlightenment and turn into SSJ $BTC
— Akado (@AkadoSang) May 25, 2017
Welcome to Bitcoin
The drop follows three straight days of price increases for Bitcoin as the price climbed from $2000 to $2800, which is was an all-time high for coin. In financial markets, it is not uncommon to see corrections like this after relatively large gains over a short period of time, which really does bring a touch of sanity to a frenzied market. That the decrease was not more substantial, given what has overall been a very large rise, should give investors comfort.
Bitcoin has been historically famous for its massive volatility, with its price declining by several orders of magnitude in just the space of minutes. In August 2011 the price dropped by almost 50% from $13.50 down to just $7 in the period of 7 hours. However, the coin is also famous for its sudden gains too, as Bitcoin prices began hitting $80 dollars in the same year.
Another example is the 2013 crash, often attributed to the downfall of the infamous Japanese based exchange, Mt. Gox, when the site went down it took many Investors coins with it. Bitcoin took its time recovering, and cryptocurrency as a whole entered a bear market. Bitcoin has made slow and steady gains since then, however, it is only since March that the gains have started to rise at a disproportionately increased rate.
It comes as no surprise that in the wake of such massive gains that Bitcoin fever seems to have struck again.
With daily candles ultimately still in the Green, all signs still point to the coin remaining Bullish and, at the current time of this writing, it has since started climbing back towards $2,550.
What do you think of Bitcoin’s volatile history? Do you think prices will continue to climb or is it a bubble that is about to pop? Let us know in the comments below!
Images courtesy of BitcoinCharts, AdobeStock