Bitcoin has tumbled below $US4,000, down 7% at 3,996 a coin, after a strong surge pushed the cryptocurrency’s price to almost $US4,500 on Monday.
Still, the price of the cryptocurrency is up 323% year-to-date. Bitcoin has been on a tear following the August 1 fork that split the cryptocurrency in two.
Bitcoin’s recent meteoric rise grabbed the attention of Wall Street. Goldman Sachs told clients in a recent note that the cryptocurrency space is worth paying attention to.
And VanEck, the $US25 billion money manager, filed with the SEC to launch a bitcoin ETF.
But folks in the cryptocurrency space aren’t looking at today’s losses as a sign that the good times are coming to an end. Greg Dwyer, head of business development at BitMEX, a Bitcoin mercantile exchange, told Business Insider this is a normal and expected market correction.
“At $US4400, the market was looking extremely toppish – I believe this move is a result of traders deciding to take some profits off the table after this enormous rally,” Dwyer said in an email.
These kind of drops are part and parcel with bitcoin, according to Dwyer.
“For everyone who is new to bitcoin, this is where we say ‘welcome to crypto-trading,'” he added.
Aaron Lasher, the chief marketing officer at Breadwallet, a Bitcoin technology company, referred to the 7% drop as a “healthy correction.”
“Keep in mind that when this bubble finally pops the price will probably bottom out with a 60-80% correction,” he said.
So, keep your popcorn on hand folks.
Get the latest Bitcoin price here.
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