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REUTERS / Stephen Lam
- Bitcoin plummeted further on Thanksgiving as intense profit taking dragged down prices.
- The most popular cryptocurrency in the world plummeted 5.9% to $ 16,242.70 in the past 24 hours.
- The bitcoin crash is the biggest since the coronavirus pandemic hit markets in March and reverses the weeks-long rally that placed the token within walking distance of all-time highs.
- Other cryptocurrencies, including Ethereum and XRP, were involved in the sale and sank.
- Watch live bitcoin trading here.
Profit-taking during Thanksgiving stalled the bitcoin rally and prevented the token from resuming its highest unseen record since 2017.
The most popular cryptocurrency in the world has sunk as much as 5.9%, to $ 16,242.70, in the past 24 hours. The drop is bitcoin’s biggest since the coronavirus first rocked the markets in March and reverses the one-week uptrend fueled by a renewed uptrend.
Bitcoin has come under $ 300 since reaching a new all-time high last Wednesday when it hit an intraday high of $ 19,494. With the $ 19,000 resistance level first cleared on Tuesday, all eyes were on whether the coin could break above $ 20,000 for the first time.
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“This instrument remains as volatile and highly speculative as ever,” said Craig Erlam, senior market analyst at Oanda Europe on Friday. “There may be more reason to be optimistic about cryptocurrencies than three years ago, but some things just haven’t changed. The wild ride continues.”
The cryptocurrency sell-off dragged more tokens throughout the day. Ethereum fell 8.1%, and XRP fell 15.9% to 24-hour lows.
Bitcoin has enjoyed extraordinary momentum ahead of the Thanksgiving holiday. The adoption of cryptocurrency trading on PayPal triggered the token’s rally in October, and bullish comments from Wall Street giants including Mike Novogratz and Rick Rieder further boosted prices. New interest from retail investors extended the surge into November before Thursday’s turnaround.
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To be sure, bitcoin still more than doubled in 2020 despite its collapse. The magnitude of its rise and fall over the course of the year resembles the boom and fall of 2017. It remains to be seen whether the intense price swings bring bitcoin back to about $ 3,000 as it did three years ago. While some advertise a broader investor base as a key support for the cryptocurrency, others aren’t convinced that bitcoin’s wild volatility will cool down anytime soon.
Bitcoin was trading at $ 17,054.31 at 8:20 am ET on Friday, up 135% year to date.
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