Bitcoin crashed 10% after hitting a record high, but now it's rallying again

Photo by Joe Raedle/Newsmakers

You’d have to be a brave soul to be trading Bitcoin right now, at least in the short term.

The recent price action has been wild — and that’s saying something given the large intraday swings that are usually witnessed in the cryto-currency.

The 5-minute chart below from Thomson Reuters shows the recent price action.

Bitcoin 5-Minute Chart. Source: Thomson Reuters

After hitting a fresh record-high of $US2,230.33 in US trade, it tumbled over 10% to as low as $US2,001 before rebounding yet again.

It currently fetches $US2,080.79, having added over 4% in just the past 45 minutes.

While the recent short-term movements have been all over the place, the trend this year — apart from a stumble in March — has been significantly higher.

From the low of $US891.33 struck on March 25, and even with the recent slump, it is still up a stonking 135%.

Last week, Business Insider reported that recent gains were likely driven by developments in Japan where Bitcoin is now recognised as legal currency.

Speculation that the US Securities & Exchange Commission (SEC) may overturn its decision to ban the creation of a Bitcoin Exchange Traded Fund (ETF) may have also been a factor.

The SEC has stated that it would accept public comments on the subject until May 15, but it’s yet to make a final decision.

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