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Bitcoin Shows Volatility Once Again With Sharp Overnight Drop, Now Back Below $70,000
Bitcoin offices are seen in Istanbul, Turkey on February 28, 2024.
Umit Turhan Coskun | Nurphoto | Getty Images
Bitcoin suffered a sharp decline in overnight trading, showing that the world’s largest cryptocurrency has failed to shake off its steep downward trend despite continuing to gain acceptance within the traditional financial world.
Coin Metrics data shows Bitcoin The stock was trading above $72,000 late Thursday before falling to about $67,000 Friday, a drop of about 7%. The price had rebounded to about $68,900 by Friday afternoon.
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Bitcoin fell sharply overnight after surging above $72,000 on Thursday.
The cause of the drop in the price of bitcoin, which trades 24 hours a day, was not immediately clear.
Bitcoin is still up about 60% year-to-date, and the overnight drop came after hitting near-record highs. The cryptocurrency has been soaring in recent months, partly on anticipation and then demand for new bitcoin ETFs launched in the U.S. in January.
“I think it’s a healthy move. We’re removing some of the leverage that has built up in the system,” Crypto.com CEO Kris Marszalek told CNBC.Scream box” Friday, adding that the selling pressure was likely coming from the options market.
Rapid rises and sharp falls are a recurring feature of bitcoin’s history. In its previous bull market, bitcoin surpassed $68,000 in November 2021, but was trading below $20,000 about a year later.
Crypto optimists believe that volatility in the asset class should decrease as bitcoin matures. The advent of Bitcoin ETFs, which make it easier for a broader range of investors to gain exposure to cryptocurrencies, could theoretically help reduce this volatility.