LONDON – Bitcoin’s value rallied above $US15,000 on Saturday following a day which saw the its value collapse more than 30%.
Frantic trading of the cryptocurrency on Friday brought exchanges to a halt as investors reacted to warnings from regulators and pulled their funds out, pushing Bitcoin’s value down as much as 32% from its Thursday peak to $US10,775, before it climbed up above $US15,700 on Saturday.
Here’s the chart at 2.50 p.m. GMT:
Earlier in the week, bitcoin’s price started to plunge after one of the founders of the influential website Bitcoin.com announced he would sell his stake in bitcoin.
Unlike more traditional markets, bitcoin has no mechanism to halt trading when there are large losses in its value. These are known as circuit breakers, and they automatically pause trading when assets fall by a set percentage.
As Business Insider Australia’s Paul Colgan and David Scutt pointed out, Friday’s sell-off has had a ripple effect on other major cryptocurrencies.
“The price action appears to be spilling over into other cryptocurrencies, with the second-largest by overall market value, Ethereum, down 26%, and bitcoin spinoff bitcoin cash – which was moving in the opposite direction to bitcoin earlier this week – down a whopping 38% in 24 hours, according to CoinMarketCap,” they wrote.
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