Unfortunately, there was little time for traders to celebrate reaching this psychologically important milestone.
Bitcoin has hit $40,000 for the first time — just five days after surging beyond $30,000.
The world’s biggest cryptocurrency managed to reach highs of $40,180.57 on Thursday. Unfortunately, there was little time for traders to celebrate reaching this psychologically important milestone.
Within a matter of hours, BTC tumbled by as much as 7% to $37,366. In a sign the volatility is far from over, it later gained some of the lost ground — settling at $38,352 at the time of writing.
Sudden pullbacks have been common after Bitcoin has notched up a new all-time high, with prices consolidating before surging once again. When BTC neared $20,000 back in November — surprising many who felt such a figure was unlikely in 2020 — prices dramatically tumbled before coming back with a vengeance.
A fall of $2,800 would have been nothing short of calamitous for Bitcoin just a few months ago. But in percentage terms, the decline is relatively tame based on this cryptocurrency’s reputation.
Pundits are increasingly warning that a dramatic pullback could be imminent — and according to one prediction, this could result in up to $10,000 being rapidly wiped off Bitcoin’s price. Gavin Smith, the CEO of Panxora Group, told Reuters:
“While further growth is inevitable, investors should not expect this to move in a straight line. The reality is that Bitcoin is far from being a magic money tree, nor is it free from downward price swings. In fact, we can expect dips as sharp as 25% at times as investors periodically withdraw profits.”
Subscribe To Our Newsletter!
Stay ahead of the curve with the free CoinMarketCap newsletter. We’ll bring you the latest headlines, analysis and market activity, direct to your inbox, every weekday.
