Bitcoin just shed a week’s worth of gains in minutes.
The cryptocurrency plummeted 10% in barely half an hour, falling from $9,500 to as low as $8,100 on some exchanges. It has since snapped back to roughly $8,700 at the time of publication.
Before this negative price action, bitcoin was flirting with a price point of $10,000 after a week of surging buying pressure. All of this after its price was cut in half on Black Thursday amid a larger macro sell-off. Since hitting roughly $4,000 on March 13th, bitcoin’s price has more than doubled.
The frenetic volatility foreshadows the halving, an event in which Bitcoin’s mining reward is cut in half. On roughly May 11th, bitcoin’s mining reward will be reduced from 12.5 to 6.25. Arguments have circulated taking either stance that this is bullish or bearish for bitcoin.
Yesterday, news broke that hedge-fund veteran Paul Tudor Jones is long bitcoin through the futures market.