Bitcoin Drops from 19,000 to 11,000 dollars in Five Days

Bitcoin price drops fromm 19,000 to 11,000 dollars in five days

ECONOMY: The exchanges were briefly interrupted on Coinbase market, and then the virtual currency has stabilized at $ 13,000 Friday …

We must have the faint of heart. The price of Bitcoin is a roller coaster , with extreme volatility: it went from 19,700 dollars last Sunday, to less than $ 11,000 on Friday morning, a drop of 45%. The Coinbase market, the most important platform for exchange of bitcoins, even made a break on Friday because of a too high traffic. The purchase and sale of bitcoin have however resumed two hours later, and the price rebounded to stabilise at around $ 13,000.

No special announcement explains this nervousness. But with a price multiplied by 20 in a year, the profit taking are normal. While the general public began to take notice, “the long-term investors were sitting on big gains so that a correction was inevitable,” said the analyst Benjamin Robert on the CNBC financial channel.

An “abnormal” jump

Unlike the dollar or the euro, this payment is not issued by central banks but “undermined” or created a decentralized manner by computers using complex algorithms. The banks, which with the Bitcoin no longer play their traditional role of intermediaries in financial transactions, especially criticise a lack of transparency in the fixing of the price, the vertiginous jump was ruled Thursday “abnormal” by the Governor of the Bank of Japan Haruhiko Kuroda.

This week, the entourage of the Minister of Finance, Bruno Le Maire told AFP that France would talk about Bitcoin at the G20. “The rise of Bitcoin, presents risks versus speculation and against the possibility of illicit funds,” said the source, who insisted on the need for “a legal framework.” “France will raise this in the G20,” he said.

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