If there’s one thing you can be sure of when it comes to cryptocurrency, it’s the fact that it is volatile. You’re never sure if it will crash tomorrow or break a record. Tuesday afternoon it did the former; various digital currencies crashed to the dismay of many #moneymagic
Bitcoin, the most popular cryptocoin, which reached an impressive $19,800 at Christmas time, fell abruptly at the beginning of the week. At the end of Tuesday, it was trading below $10,000 on Coinbase. The value of the digital money fluctuated during the evening, going for $11,000 as of 8:12 p.m., ET. only to fall yet again two hours later for a $10,757 price. As you know, Coinbase is the leading marketplace for Bitcoin, Ethereum, Litecoin trading.
It wasn’t the only form of cryptocurrency that took a drastic plunge. We don’t know what was in the air, but Ethereum dropped 30%, prices dipping lower than $1,000. It was definitely a scare for people who are keeping their cryptocoins still, waiting for the best opportunity to trade them. That’s the risk though with this type of digital money – wait too much and you might get the worse deal. It’s also part of the excitement, though, and we suspect the cryptocurrency craze won’t disappear too soon.
As for the reason Bitcoin and Ethereum prices dropped (as well as other digital currencies), well, that’s everybody’s guess right now. It did coincide with recent rumors of South Korea intending to enforce stricter rules on that type of trading. We’ll see what happens in the weeks to come – if this was a symptom of a bigger problem looming on the horizon or not.