Bye-bye $20,000. Hello $10,000.
The price of bitcoin has dropped 50 percent from its high of nearly $20,000 last month. Currently, it’s worth just over $10,000, according to CoinDesk.
At the end of 2017, bitcoin had shot up to 20 times its value since the beginning of the year. Like other cryptocurrencies, bitcoin is extremely volatile, meaning that huge price swings are not uncommon.
Chinese investors have been hoarding bitcoin for years, partly because capital controls in China make it hard to swap out its local currency for other denominations, like U.S. dollars. But aside from the clampdown in bitcoin trading, there’s little rhyme or reason to why it swings so wildly.
Basically, if you bought it recently, near its peak, you lost half your money. If you bought it years ago, you’re still up a lot of money. You could be spinning a roulette wheel, in other words, unless someone has a better explanation.
When bitcoin crossed above $10,000 late last year, it was seen as a watershed moment for the cryptocurrency, which is moving from the fringes to a mainstream force that Wall Street and venture capital have to confront.
And as usual, there are cryptocurrency diehards and naysayers:
Look at the bright side, if you’re new to crypto and bought at the ATH’s, you’re learning why you should never get into debt to buy crypto…
— Vinny Lingham (@VinnyLingham) January 16, 2018
I think I’ll just step in here to buy the dip in Bitcoin. What’s the worst that could happen? pic.twitter.com/znUcMEv0er
— Ben Carlson (@awealthofcs) January 17, 2018
My recommended strategy tonight as the cryptocurrency bloodbath reaches its apex….
— Mike Dudas (@mdudas) January 16, 2018
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