While peaking it $5,000 over the weekend, Bitcoin joined almost every other digital coin that experienced double-digit drops in value over the past 48 hours or so, before finally recovering again today (Tuesday). Toward the end of the weekend and yesterday’s holiday, the total cryptocurrency market lost 20 percent in overall value, from a Saturday market cap of $180 billion down to $142 billion. Bitcoin was down some 16.5 percent, while Ethereum lost 23.5 percent.
Or, perhaps the market simply overheated. As mentioned, the value of Bitcoin rose to $5,000 before the crash, which could just be a natural cool-down reaction — like when a thread is pulled taut and released. Bitcoin’s history of price breakthroughs have always been followed by price drops. Besides, judging by today’s values which are already up from yesterday by 2.98 percent for Bitcoin and 6.87 percent for Ethereum (as of writing), it looks like the cryptos are already recovering.
Until the next drop, that is.
Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.