Bitcoin plunged below $8,000 on Friday, a whopping 60 percent drop from its high less than two months ago, before rebounding. After skyrocketing to a record $19,000 per bitcoin in December, the digital asset has endured a series of steep drops, drastic for even the notoriously volatile crypto trade.
Smaller cryptocurrencies were down, too, with Ethereum off more than 25 percent, Ripple down 30 percent and Bitcoin Cash down 24 percent at some points. The cryptocurrency markets were joined by the U.S. stock market.
The Dow Jones Industrial Average dropped more than 650 points on Friday, finishing its worst week in two years. Those people who held on to their bitcoins enjoyed some relief, though, with bitcoin’s price rebounding to trade around $8,700 as of Friday afternoon.
But the broader decline has stoked fears that bitcoin skeptics were right to call its rise a bubble. If bitcoin is a modern-day “tulip mania,” the bloom appears to be off the rose.
At least, that is, if you bought after late November, when bitcoin’s rally turned it from a fringe technology into a hotly debated commodity. “Anyone who bought before Thanksgiving is still playing with house money,” Nick Colas at DataTrek Research, an analyst who’s been covering cryptocurrency for over four years, told NBC News. Read more from nbcnews.com…
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