Bitcoin rollercoaster ride continues as the world’s most popular cryptocurrency lost 10% of its value in 2 days
Imagine you had $42,000 in your bank account. Then you checked back a week later only to find out you’ve lost about 25 percent of its value. What would you do? That’s the case with bitcoin, the world’s most popular cryptocurrency. In the second week of this month, bitcoin topped $40,000 reaching nearly $42,000 for the first time. Bitcoin reached a new high pushing the cryptocurrency market value past $1 trillion.
Fast forward two weeks later, bitcoin has lost about 25% of its value. The price of bitcoin plunged to over 6% on Thursday to as low as $32,527, falling below the $33,000 level for the first time since Jan. 13, according to data from industry website CoinDesk. The two-day bitcoin sell-off wipes out $100 billion from the entire crypto market.
The volatility and the roller coaster ride makes it difficult for bitcoin to gain mainstream adoption even as it gains support from institutional investors. The volatility also proves that bitcoin is not a viable form of currency or store of value to fiat currencies like the US Dollar, Euro or British Pound.
Meanwhile, Ethereum, the second-largest cryptocurrency by market value, was also down nearly 10% from where it was two days ago. The coin hit an all-time high of $1,439 on Tuesday, according to Coin Metrics data.
So far, the global cryptocurrency market has now lost more than $100 billion in the last 48 hours, falling from about $1.06 trillion to nearly $949 billion at about 5:20 A.M. New York Time.