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LONDON – Bitcoin is down nearly $ 3,000 in less than 24 hours after hitting highs that have not been seen since late 2017.
The price of Bitcoin was trading at $ 19,374 at 1:45 p.m. London time Wednesday when it started its slide. Losses accelerated overnight, with the price falling from $ 18,824 at 2 a.m. on Thursday to $ 16,857 at 9 a.m. on Thursday, according to data from industry site CoinDesk.
Bitcoin cracked in 2020 and soared over 150% in one jump. Crypto enthusiasts have unprecedented monetary and fiscal incentives in response to the Covid-19 crisis, as well as the interest of big-name investors such as Paul Tudor Jones and Stanley Druckermiller.
The most recent fall comes as many have predicted that the cryptocurrency would soon hit an all-time high of $ 20,000.
Antoni Trenchev, managing partner and co-founder of Nexo, which describes itself as the world’s largest crypto lender, expects Bitcoin to soar well into the $ 20,000 mark and beyond.
“In the long run, I don’t see anything that will affect the irrevocable surge in Bitcoin,” Trenchev said. “That doesn’t mean we won’t have retreats along the way. Look what happened in March. Bitcoin fell 40% in one day during the panic in the coronavirus market. 20 to 30% falls can and should.” to be expected.”
He added: “Any healthy market has to go through retreats and phases of consolidation. As early as 2020 we were able to record a growth of 160%.”
Bitcoin peaked at $ 19,783 in December 2017. After that milestone was reached, the bubble burst and Bitcoin fell to $ 3,122 the following year.
It rose above $ 15,000 on November 5, above $ 18,000 on November 19, and above $ 19,000 on November 24.
The market value of Bitcoin – calculated by multiplying the total number of Bitcoins in circulation by the price – is now $ 315.3 billion, compared to $ 355.9 billion on Tuesday, according to CoinDesk.
– CNBC’s Ryan Browne contributed to this story.