What can you say? Bitcoin’s going to be bitcoin. The world’s best known crypto-currency has on been an incredible tear for months, reaching a two-year high of $774 per unit on June 18.
But then the bottom fell out (again), and the price plummeted to a low of $551 at one point on Wednesday. That’s a drop of nearly 30% in less than a week, representing yet another example of the boom-and-crash patterns that have been part of bitcoin since the beginning.
While there’s been a modest bounce-back (the price was around $580 early Thursday), it’s worth asking what caused bitcoin to collapse this time around.
According to CoinDesk sources, the price crater on Wednesday came in response to signs the U.K. is not likely to leave the European Union. In other words, some may have been treating bitcoin like gold—a value haven in times of volatility—and bet that Brexit would increase its value.
I can’t verify if this true, but color me skeptical. In the event of turmoil in global markets, bitcoin is one of the last places I would put my money. I bet many bitcoin owners feel the same way, and would flee to, you know,