At last check, BTC was trading down -4.64% to $2,335.75. It had traded as low as $2,214.97 in the past 24 hours.
Business Insider notes the precipitous drop comes amid yesterday’s Fed rate hike decision, along with an unsustainable recent run-up:
The sell-off comes as markets around the globe are under pressure a day after the Federal Reserve raised its key interest rate by 25 basis points and laid out its plan to begin unwinding its massive balance sheet.
But, the writing has been on the wall. Bitcoin had gained about 180% from the beginning of April through the middle of June, putting in a high of $2,999.97 on June 12.
Hackers have been increasingly targeting bitcoin and other crypto exchanges as well. As the prices of the currencies surge, so too does the lure for nefarious groups to attempt to steal tokens.
Bitcoin’s incredible surge this year has also drawn criticism from many of the investing world’s heavy hitters. Earlier this week, the publisher of The Global Macro Investor, Raoul Pal, called the rally a “mania” that’s clearly reached bubble levels. Billionaire Mark Cuban echoed similar sentiments.
While the future of cryptocurrencies is undeniably bright, investors should expect several major downturns along the way. Speculation has run rampant in the industry, and volatile cryptocurrencies continue to be at major risk of short-term plunges. Plan accordingly.