Business in Tech

Bitcoin Lost About $3b Of Its $17b Value In Less Than An Hour Yesterday

Bitcoin value has been rising and just three days ago it was above $1,000 for the first time in three years after reaching all-time highs $1,163 in 2013. But just yesterday the value of the electronic currency dropped more than 20 percent in just about 40 minutes and this comes as the currency recorded a 10 percent daily growth last year.

For a currency that was valued at about $17.7b three days ago, it lost more than $3b to be valued at $14.6b. This means that Bitcoin is now trading at $950 from $1,100 a few days ago. While this is a drop, it’s still a good place but the currency has come to be associated with high volatility.

The price of Bitcoin in China has been rising even as the Chinese currency has been at its weakest point in 20 years. “China was cooking the bitcoin soup,” said Bobby Cho, who’s on the bitcoin trading desk at Cumberland Mining, part of derivatives giant DRW. “It came out a little frothy.” – (Quartz)

The demand for bitcoin has been so high that 12.5 bitcoins were added to the system every 10 minutes but with the rally in the Chinese currency as a result of capital controls in the world’s second biggest economy, analysts believe this is the time to buy and hold.