Bitcoin prices slumped sharply Friday, losing at least a third of its value in just 24 hours, amid a year otherwise marked with exponential growth for digital currency.
Costs dropped just below $11,000 Friday morning before later rebounding to around $12,000 — which is still 25% less than where figures stood Thursday morning, according to data from CoinDesk.com.
Bitcoin’s worth soared in recent weeks, though Friday’s figures brings it back down to the cost it was traded for at the beginning of the month.
Prices in November had skyrocketed from under the $10,000 mark in November to just below $20,000 on Sunday — it’s all time high.
At the beginning of the year, Bitcoin cost less than $1,000.
Experts believe the surge was in part prompted by an expectation that more mainstream investors will utilize Bitcoin, CNN Money reported. But its dramatic rise has also sparked concern among experts, who worry the industry is merely a bubble ready to pop.
Michael Jackson, a partner at venture capital firm Mangrove Capital Partners, pushed back against that idea.
“The vast majority of long term holders of Bitcoin are still way in the money and have shown no signs of cashing out,” he told CNBC.
“We see the exit of short term speculators and we have seen it before. The fundamentals are still in place, and there is no reason why the Bitcoin ecosystem should not continue to develop.”
With News Wire Services