From an all-time high of $58,000, Bitcoin’s price has plummeted by $10,000 in just 10 hours.
On the afternoon of February 22, Bitcoin broke its own record when the currency’s price hit 58,250 1 Bits. This price has pushed the capitalization of the digital currency beyond the $1.2 trillion threshold. However, the market had a phenomenal run when, just hours later, Bitcoin’s price made a sharp correction.
As noted by Pv, at 9pm on February 22 (Vietnam time), Bitcoin’s price dropped to just $47,600. Compared to its peak price this afternoon, the currency has fallen as much as 20% in value. At this time, Binance – the largest Bitcoin exchange in the world has encountered a state of shock and inertility.
There are many reasons for Bitcoin’s sharp drop in price. First, it must be mentioned the take profit mentality of large investors. Bitcoin prices have been rising continuously since late January. During this period, from the price of 30,000 USD, the price of this virtual currency has doubled. Therefore, many investors will feel that this is a favorable time to take profits waiting for the next development of the price.
The second reason bitcoin prices have fallen is the fear of small investors. The Bitcoin craze back in 2017 has clearly left a profound lesson for Bitcoin investors. While the sentiment is upbeat because of the arrival of more and more big investors, many still fear the Bitcoin bubble could burst at any time. Billionaire Elon Musk’s tweets once sparked a Bitcoin craze. So, with the spokesman of an equally famous billionaire, Bill Gates, it is believed that it will have the same influence on investors in the market. Besides, another reason for the sharp fall in Bitcoin prices may come from billionaire Bill Gates’ own shocking statement. The Microsoft founder argued that Bitcoin was a redundant invention. He also asserted that he does not currently hold any cryptocurrencies.
However, there is still positive information for those who love the virtual currency Bitcoin. Shortly after bitcoin’s shock fall, the currency quickly recovered its value. Just half an hour after hitting $47,600, the price of the virtual currency Bitcoin quickly returned to $53,000. Surely many investors still believe that the last shock drop was just a correction in Bitcoin’s price before setting new records.