In the wee hours of Friday, the largest cryptocurrency in the world dropped 9% to $66,885.
There is more than one factor at work in the abrupt decline of Bitcoin, making it challenging to identify just one.
One reason is that a lot of cryptocurrency traders will be capping their gains following an incredible bull run that has seen a 175% increase in over the last 12 months.
Another has to do with the general unpredictability of the world economy, as evidenced by the US’s unexpectedly high inflation, which cast doubt on plans to lower interest rates.
“Bitcoin has an established history of getting volatile and ruthless after hitting a record high,” said Matt Simpson, an analyst with City Index.
