Bitcoin Drops In Value
The price of bitcoin slid more than 20% on Friday, a move that was a result of a strong recovery in crypto world and did not seem to have a proper trigger since early April that brought it to 10-month highs.
Bitcoin fell to $6,178 (5531.40 euros) at Bitstamp exchange, down by 21.6% from its previous close and last stood down 8.2% at $7,237.
Regardless, Ryan Rabaglia, a head of trading in digital asset brokerage OSL, stated that the sudden decline may not really be due to any particular news item.
He continues, that it may largely be driven by a handful of people ordering sales rather than a single individual, and they are highly likely to be realizing their profits after the recent price rise or they may be looking to buy more at cheaper price.
The bitcoin price begun to rally since early April after a few lackluster months that hit a 10-month high earlier this week.
There is still no clarity in what really ignited this rally, but some analysts believe this to be a cause of the escalating trade wars. Crypto-currency is not backed by any government so this increases demand for bitcoin and other digital currencies.