Bitcoin (EXANTE: Bitcoin) plunged below $13,000 on Friday after losing around a third of its value in just five days, with the digital currency on track for its worst week since 2013 after a blistering ascent to a peak close to $20,000 on Sunday, Reuters reported.
Bitcoin has fallen each day since surging past $20,000 on some exchanges on Sunday. It fell to as low as $12,560 on Bitstamp, marking a fall of almost 20 percent on the day. At 08:50 GMT it was trading down 15 percent on the day at $13,320 and was heading for its worst day in more than three months.
“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London.
“A lot of traders have been waiting for this large correction. With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period,” he added.
As rival cryptocurrencies slid along with Bitcoin, the total estimated value of the crypto market fell to as low as $480 billion, according to industry website Coinmarketcap, having neared $650 billion just a day earlier.