Although Bitcoin reached an all-time high of $US3,000 in the last 24 hours, it also dropped $US300 in the same period, showing the virtual currency’s instability.
Indeed, just hours later, it rose again to $US2,900, which led some analysts to breathe a sigh of relief.
Although the value of Bitcoin did bounce back to its previous levels, one industry commentator warned that it could signify the downfall of virtual currencies as a whole, showing the market may not be as robust as many think.
“It is just standard technical divergences – we made a higher high on less volume and waning momentum,” BTC VIX, a representative of the Whale Club, told CoinDesk. “[This could] signal a weakening trend.”
The issues were worsened by some bitcoin exchanges crashing over the last day, for example, Coinbase was throwing up the error message: “Coinbase is currently experiencing high traffic & customers have receive(d) a “service unavailable” message when visiting Coinbase.com.”
Meanwhile, the BTC-E exchange said it was the subject of a DDoS attack and that’s a pretty major issue as that particular exchange accounts for around 6% of US dollar-denominated bitcoin trade.
However, values are still an average of 150% above 2016 levels. Just a month ago, bitcoin hit $US2,000 for the first time in its history.