Bitcoin offices are seen in Istanbul, Turkey on February 28, 2024.
Umit Turhan Coskun | Photo only | Getty Images
Bitcoin suffered a steep decline in overnight trading, showing that the world’s largest cryptocurrency has not shaken its tendency towards sharp declines even as it continues to gain acceptance in the mainstream financial world.
Data from Coin Metrics show Bitcoin It was trading above $72,000 late Thursday evening before falling to around $67,000 on Friday, down about 7%.
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Bitcoin fell sharply overnight after trading above $72,000 on Thursday.
It was not immediately clear what caused the decline in Bitcoin, which trades 24 hours a day.
Bitcoin is still up about 57% year to date, and the overnight decline came from near record highs. The cryptocurrency has risen in recent months, in part due to anticipation and then demand for the new Bitcoin ETFs that launched in the US in January.
“I think it’s a healthy step. We are removing some of the leverage that has built up in the system,” Crypto.com CEO Kris Marszalek said on CNBC’s “Squawk Box” on Friday, adding that the selling pressure is likely coming from the options market.
Rapid rises and steep declines have been a recurring feature in Bitcoin’s history. In its previous bull run, Bitcoin rose above $68,000 in November 2021, but traded below $20,000 about a year later.
Crypto optimists say the asset class’s volatility should decrease as Bitcoin matures. The emergence of Bitcoin ETFs, which make it easier for a larger number of investors to gain exposure to cryptocurrencies, could theoretically help reduce this volatility.
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2024-03-15 12:06:56
www.cnbc.com
