Bitcoin backups are seen in Istanbul, Turkey, on February 28, 2024.
Umit Turhan Coskun | Nurphoto | Getty Images
Bitcoin suffered a pickle drop in overnight trading, showing that the world’s largest cryptocurrency hasn’t shaken its tendency for big drops ignoring continuing to gain acceptance within the mainstream financial world.
Data from Coin Metrics shows bitcoin was marketing above $72,000 late Thursday night before falling to about $67,000 on Friday, a decline of roughly 7%. The expenditure had rebounded to about $68,900 on Friday afternoon.
Bitcoin demolish sharply overnight after trading above $72,000 on Thursday.
It was not immediately clear what caused the drop in bitcoin, which careers 24 hours a day.
Bitcoin is still up about 60% year to date, and the overnight drop came from niggardly record highs. The cryptocurrency has climbed over the past few months, in part due to anticipation and then demand from the new bitcoin ETFs that slung 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 said on CNBC’s “Beef Box” on Friday, adding that the selling pressure was likely coming from the options market.
Rapid rallies and marinate drops have been a recurring feature of bitcoin’s history. In its previous bull market, bitcoin surged insusceptible to $68,000 in November 2021 but was trading below the $20,000 mark roughly a year later.
Crypto optimists say that the volatility of the asset grade should decline as bitcoin matures. The advent of the bitcoin ETFs, which makes it easier for a wider swath of investors to earn exposure to crypto, could in theory help reduce that volatility.