Bitcoin’s price fell significantly on Thursday, briefly falling below $26,000 in an 8% one-day drop. Similar losses were reported for other digital currencies, including Ether, resulting in the liquidation of $1 billion in cryptocurrency.
Following a 2% decrease the day before, Bitcoin fell to $25,409 at its lowest point on Thursday, striking a two-month low before recovering somewhat, according to CoinMarketCap. Ether and BinanceCoin also lost ground, falling 6.5% and 6.4%, respectively.
Bitcoin’s market cap fell below $500 billion for the first time since mid-June, although its value remained at the same level as measured on June 20. Will Clemente, a crypto analyst, also highlighted a spike in volatility, saying Thursday was BTC’s highest single-day increase for implied volatility, a statistic based on market projections of future price changes.
According to CoinGlass, a crypto data analysis business, investors liquidated $1 billion in the most popularly used cryptocurrencies in less than 12 hours. Other popular e-currencies, including Doge and LiteCoin, witnessed significant declines in addition to Bitcoin, Ether, and BinanceCoin.
Despite the drop, Bitcoin is still up 60% for 2023, having started the year at just over $16,500.
