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Bitcoin price trend "roller coaster" 7 days worth 7,000 US dollars
Bitcoin plummeted by $7,000 in just seven days, while Bitcoin Cash, Bitcoin Gold, and other hard forks have also impacted the price of the leading cryptocurrency. Meanwhile, SEC Chairman Gary Gensler has warned about the hidden risks behind the current Bitcoin frenzy.
Bitcoin had been on a rapid upward trend throughout December, reaching a high of $20,000 on December 17. However, the market quickly turned bearish, with prices dropping sharply. On December 22, the daily decline exceeded 20%, and over the past seven trading days, Bitcoin fell by nearly 30%. The sudden drop led to trading halts on major platforms like Coinbase.
As of the time of writing, Bitcoin prices remain weak, with Bitfinex quoting the price at around $12,612—a 10% drop from the previous day. The price chart shows a dramatic "roller coaster" effect, with Bitcoin losing over $7,000 in just a week.
In a single day, Bitcoin lost more than $100 billion in market value, surpassing the combined market cap of financial giants like Goldman Sachs and Morgan Stanley. Trading volumes also dropped significantly, causing some exchanges to experience server crashes due to the surge in sell-offs.
After the sharp decline, Bitcoin's market showed signs of volatility. On December 23, the price rebounded slightly to around $15,000, but it fell again to approximately $13,000 on December 24. As of now, the price on Bitfinex remains below $12,600.
The rapid price swings have raised concerns among investors. From mid-September to mid-December, Bitcoin surged from around $5,000 to a peak of $20,000. However, the recent drop wiped out much of that growth, with the price falling nearly $7,000 in just a week.
Several factors have contributed to the downturn. One key factor is the launch of Bitcoin futures on major U.S. exchanges, such as the CBOE and CME, which have opened new channels for short-selling. This has increased speculative pressure on the market.
Additionally, internal disagreements within the Bitcoin community have led to multiple hard forks, including Bitcoin Cash (BCH), Bitcoin Gold (BTG), and others. These forks are seen as diluting the value of the original Bitcoin and creating confusion among users.
Regulatory warnings have also played a role. SEC Chairman Gary Gensler has repeatedly highlighted the risks associated with digital assets, urging investors to be cautious about ICOs and unregulated crypto products. He emphasized that no digital asset has been approved by the SEC for public investment.
Charlie Munger, Warren Buffett’s business partner, has called Bitcoin a “crazy bubble†and advised investors to avoid it. Meanwhile, Bank of Japan Governor Haruhiko Kuroda noted that Bitcoin is primarily used for speculation rather than as a legitimate payment method.
Security threats continue to plague the industry. In December, South Korean exchange Youbit filed for bankruptcy after a major hack, and Chinese authorities recently cracked a Bitcoin theft case involving over 20 million yuan in stolen funds. These incidents highlight the ongoing risks of holding digital assets.
With so many challenges and uncertainties, the future of Bitcoin remains unclear. While some believe it could still recover, others see it as a risky and unstable investment. Investors are advised to proceed with caution in this volatile market.