Bitcoin suddenly plunged, capitalization evaporated 150 billion USD in 24 hours

The price of Bitcoin and many other virtual currencies on January 11 slipped sharply, causing the total market capitalization of the virtual currency market to decline by about $ 150 billion in just 24 hours.

At more than 13pm Vietnam time, the Bitcoin price according to data on Coinmarketcap.com was 34,129 USD, down nearly 14% compared to 24 hours ago.

The market capitalization of the virtual currency market is now nearly $ 944 billion, down more than $ 150 billion compared to nearly $ 1.1 trillion the previous day. Of which, Bitcoin’s capitalization is nearly $ 630 billion.

At the same time, the second largest digital currency in the world, Ether, fell more than 17% to less than $ 1,070.

The plunge of virtual currencies could be a sign that many investors are taking profits after the massive rally. On Friday, Bitcoin’s price set a new all-time high of nearly $ 42,000, more than fourfold since its bottom set in March last year.

Bitcoin’s recent bull run is believed to have stemmed from a number of reasons, including increased demand from institutional investors. In addition, many forecasters refer to Bitcoin as “digital gold”, an asset capable of preserving value and fighting inflation. In a recent report, US bank JPMorgan Chase forecasts Bitcoin price could reach $ 146,000 in the long term.

Still, some critics, including Rosenberg Research strategist David Rosenberg, call Bitcoin a bubble. A report released last week by Bank of America Securities suggested that the Bitcoin bubble could be the “mother of every other asset bubble”.

Extremely volatile price volatility is a hallmark of Bitcoin. After setting a record close to $ 20,000 at the end of 2017, Bitcoin’s price has slipped around 80% in 2018. Many Bitcoin supporters believe that despite the corrections, the long-term trend of the digital currency is go up.

“Bitcoin price can go up to 100,000 USD, then 150,000 USD, then 200,000 USD,” Chamath Palihapitiya expert of Social Capital told CNBC. “In how long, I don’t know. Maybe 5-10 years, but Bitcoin will hit those prices.”