The price of bitcoin has fallen back below $10,000, down 30% from last week’s peak of nearly $14,000.
Continuing its wild ride, the digital currency dropped to $9,717 on Tuesday, down 8.1% on the day. Last Wednesday the cryptocurrency shot up to $13,879, breaking through the $12,000 and $13,000 levels in less than two hours.
Bitcoin had languished below $6,000 for months, but was galvanised by Facebook’s plans to create a cryptocurrency called Libra next year.
Other digital currencies have also fallen back. Reports that an investor placed a large short order on Sunday, betting that the bitcoin price would go down in coming days, sparked panic among investors.
Bitcoin has seen wild swings in the past, and some analysts say it could rise back to $20,000 again – or fall as low as $3,000. In late 2017 it rose to close to $20,000, before a spectacular collapse in 2018.
The cryptocurrency’s latest gyrations prompted US economist Nouriel Roubini, a long-time critic, to say that the bitcoin price would eventually fall to zero….