Bitcoin

Is Another Cryptocurrency Bubble Ready To Burst?

The price of Bitcoin plunged Thursday after major cryptocurrency exchange Coinbase suffered an outage. It comes after Bitcoin and related digital currencies and stocks staged a powerful prolonged rally after last week’s Facebook (FB) announcement that it is entering the crypto space.

Bitcoin prices soared as high as $13,844.77 on Wednesday but plunged as low as $10,373 on Thursday.

At the latest posting time, prices were down 22% to $10,792.44, according to CoinDesk.

The last time the Bitcoin price topped $13,000 was in December 2017, the same month it reached its all-time high of $19,511 before a spectacular collapse in value.

The fall in Bitcoin price could partly be attributed to an outage on popular cryptocurrency trading platform Coinbase. A Coinbase spokesperson told CNBC the site was down “for a short period of time due to high volume.” However this may merely be a symptom of extreme downward pressure brought on by users trying to cash out of Bitcoin when the price is highest.

On Wednesday, after Bitcoin rallied roughly 40% since Friday, IBD warned the digital currency was flashing signs of a possible climax run.

Other digital currencies also fell sharply Thursday. Ethereum, Bitcoin Cash and Ripple (also known as XRP) all suffered double-digit losses after strong gains Wednesday.

Among Bitcoin- and blockchain-related stocks, Riot Blockchain (RIOT) tumbled 19% on the stock market today, after spiking 15% Wednesday. Overstock.com (OSTK) fell 3.6% after Wednesday’s 25% moonshot. Grayscale Bitcoin Trust (GBTC) was down 21% after popping 14%.

Facebook stock rose 1%…

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