Bitcoin plunged 30% to near $30,000 at one point on Wednesday, continuing a major sell-off in the cryptocurrency markets that began a week ago.
The digital currency hit as low as $30,001.51 as the selling intensified Wednesday before paring some of those losses. The cryptocurrency hasn’t traded at those levels since late January.
Bitcoin rebounded as the day went on, was down 12% to about $38,205.49 shortly after 3 p.m. ET. At its intraday low, the cryptocurrency’s loss for the past week was more than 40%.
Bitcoin, dogecoin and other cryptocurrencies plunged in value on Wednesday as investors soured on the speculative bets that have soared in popularity this year.
Bitcoin’s price tumbled as much as 30% since 3 p.m. ET Tuesday, dropping to as low as $30,201.96, its weakest since January, according to CoinDesk. Dogecoin declined 31% to 33 U.S. cents on Wednesday, after earlier plunging as low as about 22 cents. Ether fell 28% to $2,376.66 apiece.
The rapid drop led to billions of dollars of bullish, leveraged bets being wiped out on offshore cryptocurrency derivatives exchanges.
“Many people have been tempted to invest purely because it has gone …
(Bloomberg) — Like many things in markets, crypto managed to maximize the pain. The rise of a slew of coins went on just long enough to pull in a bunch of otherwise sensible money. And then they made them pay.
The siren song reached a peak with Coinbase Global Inc.’s market debut on April 14. The direct listing of the largest U.S. crypto exchange supercharged theories that crypto had made it to the investing mainstream, that Wall Street’s embrace lent legitimacy to the asset class and the sky was the limit. Retail investors flooded in.
Veterans of the 2017 Bitcoin bubble no doubt had flashbacks. Back then, when the token dominated holiday conversations as its year-to-date gains approached 1,800%, CME Group Inc. ushered Bitcoin into the mainstream with the introduction of the first contract on a U.S.-regulated exchange. Their debut, on Dec. 17, sent Bitcoin to a record $19,511 the next day. But pressures from the increased scrutiny from regulators around the world caused the coin to plunge about 40% by Jan. 17.