Bitcoin Price Plunged to below $12,000 on Friday.
According to the CoinDesk exchange, Bitcoin’s price dipped below $11,000 on Friday before recovering to above $13,000.
Bitcoin has largely continued its trend of explosive growth over the past 12 months. Its price at the start of the year was about $1,000. Bitcoin broke the $14,000 mark.
On Friday, the crypto currency falls more than 30% in five days after troubled week but analysts say it could easily bounce back.
“The crypto markets have experienced several flash crashes over the past few years but we do believe there has been some overvaluation in the market, particularly over recent months,” said Jamie Burke, chief executive officer at venture capital firm Outlier Ventures.
“It’s much more likely this is a natural correction following over-exuberant market sentiment.”
Investors should be prepared for such rapid changes. Curiosity has now driven bitcoin to the futures market.
The Securities and Exchange Commission is warning investors to be careful with bitcoin and other digital currencies. The Commodities Futures Trading Commission has proposed regulating bitcoin like a commodity, similar to gold or oil.
Financial Industry Regulatory Authority issued a similar warning recently.