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Bitcoin loses over a fifth of its value in less than 24 hours

The cryptocurrency fell as much as 8% on Thursday.

Bitcoin slid to as low as $9 000 on Thursday, having lost more than a fifth of its value since hitting an all-time high of $11 395 on Wednesday.

The cryptocurrency fell as much as 8% on Thursday on the Luxembourg-based Bitstamp exchange to hit $9 000 exactly, marking a fall of well over $2,000 in under 24 hours. It then edged back up to trade at around $9 200 a few minutes later, still down over 6% on the day.

The fall tempers an astronomical rise for the cryptocurrency in recent months – bitcoin was up almost 1 100% year-to-date on Wednesday. As of 1400 GMT on Thursday, it was still up around 850%.

Its rapid ascent has prompted warnings from a stream of prominent investors that it had reached bubble territory, while Bank of England deputy governor on Wednesday said investors should “do their homework” before investing in the digital currency.

Its fall on Thursday dragged down the prices of other cryptocurrencies in its wake, with Ethereum, bitcoin’s biggest rival, falling as much as 19% on the day, according to trade website Coinmarketcap.

For the month, bitcoin is still on track for a more than 40% price increase.

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Bitcoin is an artificial currency. Anyone touching it was warned of the consequences. Do so at your own peril.

1000% up in one year vs roughly 6% if the money is left in the bank. Who are the most critical of bitcoin? The banks and other ‘experts’ that charge high fees for 6% p.a. return. Agree do your homework.

I agree with you, those who are wining about bitcoin are the banks. If that is not an indication of who will be behind the fall of bitcoin then i don’t know what is. Bitcoin will be branded as illegal as it assists with “tax Evasion”, “Terrorism” right wing extremism. Wall street has already figured out how the Block Chain tecnology works. Good bye bitcoin – hello distrust in bitcoin.

Every participant in the financial market gets exactly what he wants, nothing more. People buy Bitcoin because it is a novelty and offers great excitement as the price rises. They get what they wanted. They do not want an investment, dividends, long term capital appreciation or funds for retirement. They are not interested in long term sustainable growth.

The volatility and the ever-present risk are integral parts of the excitement and novelty. The risk of complete loss of all capital is part of the compensation the buyer of Bitcoin is after. He will get it, as sure as night follows day.

In this market you have to be really careful what you want. You have to think long and hard about it, for that is exactly what you will get, nothing more.

You do realize that there are people who bought Bitcoin that can actually think and understand risk and return right?

You say complete loss of capital will follow like it is a given. Well, in my case I bought when it was between 300 and 400 dollars, only putting in as much as I was willing to lose, knowing the potential and also the risk.

And then Bitcoin just kept climbing. When the price doubled, I exchanged half of my Bitcoin to recover my initial input.

Currently my Bitcoins are worth quite a tidy sum of money, with no more worries about incurring any losses. If the price plummeted back to 0 tomorrow (which will never happen imho) it would be unfortunate, but it wouldn’t faze me in the least. On the flip side, the trend could continue in the next few years…

Your post makes it sound like it is only an either-or option. Why can’t I do both? Why can’t I have long term sustainable growth and take some risk where I see an opportunity?

A close friend of mine said he missed the boat when the price hit 2000. Well… I think that might be the case again here and now – or not 🙂 It’s up to each person to decide what risk he wants to take on.

Any reference to “artificial currency” should be contrasted with a mention of a “real currency”. For SOMETHING to be artificial there has to be a real version of that SOMETHING. In this sense, currency as we know it cannot be classified as neither real or artificial; for currency was created by human beings and no “real” currency ever existed, to my knowledge.

One BIG question? What gives Bitcoin its value. As i see it its fear greed and most of all demand. What happens when this turns around and supply tops demand? price will fall and…..panic will set in then profit realization will cause massive selling and the brave who stay in will loose. If it were such a fantastic investment why are the multimillionaires not pouring millions in?

Millions are streaming in. Look at the market value of Bitcoin (it is a few billion….). Further multi millions are not necessary streaming in as government & banks are the biggest risk. They are the biggest risk to the truly ‘free market’ as they will do anything in their potential to protect their own selfish interests. They will not look from the sideline how their profits and subsequently bonuses are eroded. And unfortunately they have everything in their disposal to protect their interests.

Some perspective on Bitcoin “losing a fifth of it’s value”. When it dropped to $9 000 on the 30th, it fell only as far as it’s highest ever price from just 4 days earlier.

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