Bitcoin prices plummeted less than a day after being traded above $ 8,000 threshold.
According to CoinDesk data, as of the morning of May 17, bitcoin prices were at $ 7,215, down 10.1 percent in the past 24 hours. Other popular ciphers also fell sharply. Ethereum dropped nearly 8% to 241 USD and XRP lowered 15.4% to 0.399 USD. In 24 hours from the evening of May 16, Coinmarketcap data showed that the total value of pre-encrypted market dropped by more than 8%, equivalent to $ 21 billion cleared.
Jehan Chu, co-founder of Kenetic Capital, said: “The latest plunge may be due to a combination of profit taking and algorithmic trading. We expect these rapid and sharp increases will continue until institutional investors increase market volume. The main point in the past few weeks, with each price increase is interest and investment in cryptocurrency continues to increase. Realizing the use and application of blockchain in real life also goes up. ”
The latest price movement came just days after bitcoin doubled in value this year. Amid the US-China trade tensions, global stocks were affected, some argued that bitcoin emerged as a hedge against stock market volatility.
The pre-coding industry in general struggled to return to a high level in 2017. At that time, interest from many small investors contributed to pushing up bitcoin prices to nearly 20,000 USD in the last month of the year. Prices plummeted sharply right after that and the market dropped to the beginning of this year.