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.”
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