Bitcoin witnessed a dramatic plunge, defying its rising acceptance in the financial world. On Thursday evening, the price of the world’s leading cryptocurrency had soared to $72,000, but it took a near downfall to almost $67,000 on Friday—an approximate drop of 7%.
“I think it’s a healthy move. We’re removing some of the credit leverage that has accumulated in the system” , says Crypto.com CEO, Kris Marszalek. He believes that the pressure on Bitcoin stems from the options market.
Bitcoin has seen a near 57% price boost this year, partly due to the successful launch of American spot exchange-traded funds (ETFs), and partly because of the upcoming halving. After this halving, the reward for mining a block will decrease by half from 6.25 to 3.125 bitcoins.
Quick surges and steep falls are typical for Bitcoin. In November 2021, it rose above $68,000, but a year later it was trading below the $20,000 mark. Crypto-optimists are confident that the cryptocurrency’s volatility will decrease as Bitcoin “matures”. The introduction of spot Bitcoin ETFs, which makes the cryptocurrency more accessible to a wider range of investors, theoretically could help reduce this volatility.
This post was last modified on 03/18/2024