Excerpt from Quartz
Written by Joon Ian Wong
Bitcoin is back to its volatile old self. The cryptocurrency’s price plunged more than 20% in three hours of trading today (Jan. 5), a dramatic correction that occurred within minutes of its nearly hitting an all-time high.
The crash was so swift that at one point Bitcoin lost more than $3 billion in market value in just 40 minutes, slashing its “market capitalization”—the value of all the bitcoin in circulation—to $14.6 billion from $17.7 billion, a drop of about 17.5%. The price has since recovered somewhat; bitcoin is currently trading around $950, versus $1,100 just before the crash. The current price is around the same level as a week ago, but more than double what it was at this time last year.