Bitcoin lost more than 30% of its value on Friday as an analyst warned that investors in the cryptocurrency had finally been introduced to the law of financial gravity.
Having started the week at a record high close to $20,000 and in its biggest weekly fall since 2013.
Dropping to $11,500 at one point on Friday – touching $11,159 – . However, by 5pm GMT+1 it was trading at $12,800 as the currency endured a see-saw day.
Note that as of late January 2017 bitcoin was at $966, though some analyst sparked warnings that investors need to beware that they are not risking a rerun of the 17th century tulip bubble.
According to Rumour Friday’s slump was said to have been fuelled by the founder of another cryptocurrency selling his holdings. Charlie Lee, founder of Litecoin, said “I am selling my holdings to avoid a conflict of interest that i face when talking about the price of the currency which could appear to benefit me.
Jasper Lawler, head of research at London Capital Group, said this decision was probably the “root-cause of the insecurity that’s been felt across the cryptocurrency space”.