It’s been an absolute wild ride watching bitcoin in recent weeks.
The cryptocurrency soars above $8,000, then $9,000, then $10,000, and then $11,000 today, and then quickly falls back down to the $9,000 territory.
According to CoinDesk, bitcoin hit $11,388.33, a new record high, on Wednesday. Shortly after it dropped about 18% and was down to levels around $9,292. That means in less than 24 hours the digital current sank over $1,000. Talk about volatile.
A former trader who heads Estimize now, Leigh Drogen, commented, “There’s no fundamental value to any of this stuff and it’s all based on … supply and demand at any point in time.”
The chief market technician at MKM Partners, Jonathan Krinsky stated, “It’s definitely been going a bit parabolic over the past few weeks. I think today’s action marks somewhat of an inflection point. But it’s still 200 percent above its 200-day moving average, so it’s not surprising to see some consolidation here.”