According to the South China Morning Post report, Bitcoin extended its plunge from record highs and sparking a hunt for reasons the notoriously volatile asset was selling off. One that captured attention questioned the very viability of the token itself, though it turned out not to be cause for concern. The world’s leading cryptocurrency fell to as low as US$29,327 as of 8.29am in Hong Kong on Friday, after a slide of almost 11% a day earlier. Experts have cautioned that a sustained drop below the $30,000 mark could presage further losses in the wake of last year’s 300% surge.
Bitcoin might drop further, analysts predict.
“This level looks very vulnerable, and a break below $30,000 is bad news in the near-term for Bitcoin and cryptocurrencies in General,” Craig Erlam, senior market analyst at Oanda Europe, wrote in a note Thursday. “I wouldn’t be surprised to see a test of US$20,000 before too long.” A trading blog suggested that there had been what’s known as a double-spend, where the same person uses the same token in two transactions.
Bitcoin continues to hover around $31,000.
Bitcoin fell as much as 11% on Thursday to trade around US$30,986. Other cryptocurrencies also sold off, with the Bloomberg Galaxy Crypto Index losing as much as 10%. Online discussions over potential blockchain implications also intensified, with Google searches for “Bitcoin double- spend” spiking. It’s like if someone bought a car, paid the seller, drove off with their brand new wheels, and later yanked back all the money. In the case of the blockchain, or the software that underlies Bitcoin and other cryptocurrencies, the transaction in question would be excluded from the final tally on the digital ledger.
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