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LONDON – Bitcoin fell nearly $ 3,000 in less than 24 hours after reaching highs not seen since late 2017.
The price of bitcoin was trading at $ 19,374 at 1:45 p.m. London time on Wednesday when it began its slide. The losses accelerated overnight, with the price slipping from $ 18,824 at 2 a.m. Thursday to $ 16,857 by 9 a.m., according to data from industry site CoinDesk.
Bitcoin was on a tear in 2020, skyrocketing over 150% in a jump, crypto enthusiasts credited unprecedented monetary and fiscal stimulus in response to the Covid-19 crisis, as well as interest from big name investors such as Paul Tudor Jones and Stanley Druckenmiller.
The latest drop comes as many predicted the cryptocurrency would soon hit an all-time high of $ 20,000.
Antoni Trenchev, managing partner and co-founder of Nexo, which touts itself as the world’s largest crypto lender, said he expects bitcoin to rally well in the $ 20,000 and beyond.
“In the long run, I don’t see anything that will derail Bitcoin’s irrevocable rise,” Trenchev said. “That doesn’t mean we won’t have a pullback along the way. Look at what happened in March; Bitcoin plunged 40% in one day during the coronavirus market panic. From drops 20 to 30% can and should be expected. “
He added: “Any healthy market has to experience setbacks and periods of consolidation. Already in 2020 we have seen a 160% gain.”
Bitcoin peaked at $ 19,783 in December 2017. After hitting that milestone, the bubble burst and bitcoin fell to $ 3,122 the following year.
It topped $ 15,000 on November 5, $ 18,000 on November 19 and $ 19,000 on November 24.
Bitcoin’s market value – which is calculated by multiplying the total number of bitcoins in circulation by the price – now stands at $ 315.3 billion, up from $ 355.9 billion on Tuesday, according to CoinDesk.
—Ryan Browne of CNBC contributed to this story.
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