On Friday, Bitcoin plummeted extending its fall that saw the cryptocurrency drop nearly a third in value this week from an opening Monday value of close to $20,000.
The price of the cryptocurrency fell below $11,000, before recovering to end Friday just over $13,000. The vast swings in value prompted three exchanges that trade bitcoin to suspend some trades.
Bitcoin has been on an upward path the last 12 months. It started 2017 with a value of just over $1,000, and since has done nothing short of skyrocket, more than doubling its value since just last month, drawing much interest from big firms and private investors.
However, since last Sunday, Bitcoin ran into a losing streak dropping back to its value at the beginning of December.
Analyst said that investors should be ready for these kinds of rapid changes in value, which from the start characterized this asset.
A barrage of trades have taken place during this week’s plummet in price and on Friday swamped Coinbase, one of the major exchanges of Bitcoin. A tech slowdown prompted Coinbase to halt all buying and selling on two occasions.
The CBOE and CME exchanges based in the U.S. suspended trading temporarily for certain futures contract of Bitcoin, which allow investors to make bets on where they believe the prices for the cryptocurrency will be at different points into the future.
These exchanges have a set of automatic brakes that take hold once the asset or commodity has move a certain amount, which is what happened on Friday.
The market continues to be driven by sentiment, says on founder and CEO of an industry website. He added that a steep upward swing that was led by a herd will have a downturn that follows as the change in emotional sentiment takes course.
Concerns about infrastructure behind the crypto-assets might also have caused investors to be spooked said one analyst who also trades Bitcoin.
Over the past few weeks, the markets have been shaken by allegations of some insider trading and by hacks.
A Coinbase spokesperson said the company was working 24 hours a day to ensure that smooth trading would continue.
The suspensions on Friday at the exchange lasted for a total of approximately two hours. The spokesperson added that the exchange was doing everything in its power to correct the situation.