Bitcoin prices tanked and plummeted nearly 20 percent after hitting an all time high on Wednesday of $11,273.89. Prices slid back down to almost $9,000 on Thursday. The cryptocurrency slightly recovered, going back up to $9,500 midday on Thursday.
Despite the huge intraday decline, Bitcoin prices are still soaring throughout the year. The volatility of cryptocurrencies cause them to swing in a tremendous amount of momentum in either direction, but after climbing month after month, bitcoin finally saw its plummet.
Although the cryptocurrency crashed by nearly a fifth of its value, the decline seems more like a minor setback rather than the end of bitcoin. Bitcoin is still up over 1000 percent for the year.
Naturally, when prices surge investors will most likely sell their positions to capitalize on earnings. As for the case of bitcoin, it climbed $3,000 in just a span of a week. It’s no surprise that investors exited their positions on Wednesday.
The exponential rise of bitcoins is attributable to factors such as cryptocurrency becoming integrated into the investment scene and digital transactions, and shows no signs of slowing down.
Reuters reported data from Google that Google searches for “bitcoin” exceeded searches for “Trump” for the first time, although Trump had been prominent on news headlines the past week. The data shows how bitcoin has become prevalent and mainstream in various types of uses.
Data compiled by Alistair Milne shows that over the Thanksgiving holiday weekend Coinbase added over 300,000 users, bringing the total to 13.3 million. While Blockchain.info told Reuters that on Wednesday it added over 100,000 users on Tuesday, totaling up to 19 million.
New users are increasing at a faster pace than before and as investors keep fueling the fire, bitcoin should not see an end in the near future.
As the investor base grows, financial institutions also grow interested in the cryptocurrency world. On Wednesday, Nasdaq had announced that it plans to launch a bitcoin futures contracts by mid-2018, while Chicago-based exchanges, CBOE and CME Group, have planned to launch it within the year. Goldman Sachs has also expressed its interest saying it’s planning to look into new trading operations revolving around cryptocurrency.