The cryptocurrency Bitcoin was this week’s most volatile, dropping more than 6 per cent to $3,103.38 after surging by more than 10 per cent in the past three days.
Bitcoin’s value dropped by nearly 85 per cent last year and some have speculated that the cryptocurrency is due for a significant rebound. A bitcoin barometer that measures price swings reported an absolute record decline on Wednesday. The Global X Bitcoin Investment Trust’s (GBTC) daily spike-drop index fell to an all-time high of -80.22 per cent, according to Reuters.
The bitcoin barometer is a series of per cent declines plotted over a 24-hour period that measures price fluctuations. On Monday, the index rose to 45 per cent, the highest level since February.
Bitcoin has traded in an erratic fashion throughout 2018. The cryptocurrency – one of the so-called cryptocurrencies that trade on exchanges across the world – saw its market value grow from less than $10 million in 2016 to $717 billion at the end of 2018.
On Friday, bitcoin was trading at $4,220.57, according to CoinMarketCap.
Separately, the value of Ethereum was slightly lower at $558.25 after climbing by 10 per cent on Tuesday. The scaling battle – a subplot of the cryptocurrency world – was rumoured to have sparked the rally. The Ether price often rises when Ethereum prices climb.
It is not unusual for the price of bitcoin to fluctuate widely, but the recent volatility of the cryptocurrency has raised concerns that investors are taking a gamble on a sort of gambling activity that is, in a sense, a gamble of the heart – as well as a sector that is watched by the governments of states and the federal authorities of nations.