Bitcoin mania has been dealt a heavy blow today with the world’s favourite speculative “asset” crashing $US6000, or 33 per cent from its record high to $US13,280.
In nominal terms the latest correction in the bitcoin bull market rally is double previous falls, which means much greater nominal cash losses for those late to the speculative frenzy.
Bitcoin peaked at $US19,666 four days ago, but it has entered a fully fledged bear-market correction with a $US3000 loss alone today after crashing through technical support levels.
The sell-off has accelerated as the short-lived price premium seen in bitcoin futures tumbled, leaving the CME futures price in line with the bitcoin spot price.
Signs of panic set in today amid numerous reports of people struggling to sell their cryptocurrency holdings on exchanges where transaction volume levels are nowhere near those on equity market exchanges.
Writing on Twitter, respected technical analyst Peter Brandt said the “bubble has been popped” after the bitcoin price broke below the the steep trend-line in place since December 13.
Support was expected around $US13,000, and if that level broke it could fall to $US8000.
But putting the fall into perspective, the price has only retreated back to levels first hit on December 12, and it was still up about 1480 per cent over the past year.
Most other cryptocurrencies have also fallen, with etherium down almost 19 per cent as broad selling set-in ahead of the Christmas long weekend when making hard currency payments for crypto currencies will be difficult.
The fastest growing bubble in history began faltering this week with heavy selling in Asian time following news five South Korean exchanges had been hacked.
This content was originally published here.