It took just four minutes for Bitcoin’s price to take a dramatic dive of more than $800 Tuesday (June 2) as the cryptocurrency market saw red, CoinDesk reported.
The drama commenced at 14:45 Universal Time Coordinated (UTC) or 10:45 a.m. Eastern Time (ET) when the cryptocurrency was trading above $10,137.
But by 14:49 UTC or 10:49 a.m. ET, the price fell to $9,298, an 8.3 percent decline.
At 4:30 p.m. ET, Bitcoin was trading at $9,501.58, representing a 0.95 percent drop in 24 hours, according to CoinDesk.
CoinDesk reported that the sudden price drop may have trapped many traders on the wrong side of the market. But the sector looked strong following Monday’s move above $10,000. Some analysts told CoinDesk they expected Bitcoin to reach $11,000. Still, the cryptocurrency has struggled over the last year to stay above $10,000.
Bitcoin is no stranger to volatility. In January, it was enjoying the best start to a year since 2012, as investors had hopes for widespread adoption of cryptocurrencies. The price of Bitcoin approached $9,000 and traded at $8,816 on Jan. 15, up 23 percent since the start of the year, according to CoinDesk.
In April, Forbes reported Bitcoin’s price surged in March, rising sharply as the digital currency suffered severe losses amid a widespread sell-off. At the time, the digital currency’s one-month volatility reached 167.24 percent on March 31, its highest since January 2014.
Last month, PYMNTS reported that the pandemic has sparked mainstream interest in cryptocurrency with J.P. Morgan Chase providing banking services to Coinbase and Gemini, two U.S.-based crypto exchanges.
The bank is providing wire transfers, deposits and ACH withdrawals to the exchanges’ U.S. customers. It won’t provide services for bitcoin- or crypto- related transactions, however.