- ORIGINAL NEWS
Bitcoin shows its volatility once again, tumbling back to $67,000 in overnight decline
- SUMMARY
Bitcoin, the world’s most popular cryptocurrency, recently experienced a significant drop in value during overnight trading.
It fell from over $72,000 to around $67,000, a decline of about 7%, indicating that the cryptocurrency’s volatility remains high.
The reason for this sudden drop is unknown, as Bitcoin trading is a 24-hour operation.
However, experts speculate that it could be related to a buildup of leverage within the trading system.
Krist Marszalek, CEO of Crypto.com, suggests that this correction is beneficial for the market, helping to remove excessive risk.
Rapid fluctuations have been a hallmark of Bitcoin’s history.
In its previous bull run, it soared above $68,000 but later plunged below $20,000 within a year.
Despite this volatility, Bitcoin has gained wider acceptance in the mainstream financial world.
Investors anticipate that Bitcoin’s volatility will decrease as it matures and becomes more widely adopted.
The recent launch of Bitcoin ETFs, which facilitate access to cryptocurrencies for a broader range of investors, could potentially contribute to this reduction in instability.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Crypto.com CEO Kris Marszalek said on CNBC’s “Squawk Box” on Friday.”
“The cryptocurrency has climbed over the past few months, in part due to anticipation and then demand from the new bitcoin ETFs that launched in the U.S. in January.”
Negative
“Bitcoin suffered a steep drop in overnight trading, showing that the world’s largest cryptocurrency hasn’t shaken its tendency for big drops despite continuing to gain acceptance within the mainstream financial world.”
“It was not immediately clear what caused the drop in bitcoin, which trades 24 hours a day.”