Bitcoin prices fell from a high of $US1,240 to a low of $US870 this morning. This is according to data from Bitcoin exchange Mt. Gox.
That $US370 drop can by characterised as a 30% crash.
Earlier today, the People’s Bank of China warned that the controversial electronic currency carried risk. It also instructed financial institutions not to trade it.
“Is this a bubble in Bitcoin?” asked former Federal Reserve Chairman Alan Greenspan on Bloomberg on Wednesday. “Yeah it’s a bubble.”
“This is worse than the tulip mania,” said Nout Wellink, former president of the Dutch Central Bank. “At least then you got a tulip [at the end], now you get nothing.”
Here’s a look at the chart from Clark Moody.