Home news Bitcoin drops abruptly after seven weeks of recovery

Bitcoin drops abruptly after seven weeks of recovery

by George Mensah
bitcoin sank once again

Bitcoin drops abruptly after seven weeks of recovery

TOKYO (Reuters) – The rate of bitcoin abruptly dropped more than 20% on Friday, a move that didn’t appear to have a unique trigger and got hereafter a strong recovery in the crypto-currency due to the fact that early April that took it to 10-month highs.

Bitcoin fell to as low as $6,178 (4,831 pounds) at Bitstamp exchange, down 21.6% from the preceding close and last stood down 8.2% at $7,236.

bitcoin drops recovery

“The sudden fall does not appear to have been driven by any particular news item,” said Ryan Rabaglia, head of trading at digital asset brokerage OSL.

“Rather it looks to be driven by large sell orders by a handful of people or even just one person, who are likely realizing profits after the recent price rise or looking to acquire more at lower prices,” Rabaglia said.

After many lackluster months, the rate of bitcoin started to rally from early April, hitting a 10-month high formerly this week.

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While there is no clear consensus on what drove the rally, some analyst has referred to rising tensions between Washington and Beijing may also have helped to boost demand for bitcoin and other digital currencies that are no longer backed by a government.

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