Bitcoin value takes a huge plunge

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Bitcoin’s value, as well as that of several other major cryptocurrencies, plunged Thursday evening, causing temporary, built-in trading halts in the bitcoin futures traded on the CME and Cboe.

According to CoinDesk, Bitcoin fell more than 20 percent to a low of $12,504, down more than $3,000 from its $15,820 less than 12 hours earlier.

The digital currency recovered slightly to $13,545 after 4:00 a.m., but was still down almost 13 percent for the session.

It’s not clear what caused the digital currency’s sudden descent, but despite the sharp drop, the decline only took Bitcoin to roughly two-week lows. The digital currency is still up more than 1,300 percent this year.

“The vast majority of long term holders of bitcoin are still way in the money and have shown no sign of cashing out,” Michael Jackson, a partner at venture capital firm Mangrove Capital Partners, said in an emailed comment Friday.

“We see the exit of short term speculators and we have seen it before. The fundamentals are still in place and there is no reason why the bitcoin ecosystem should not continue to develop.”

CoinDesk’s bitcoin price index tracks the price of bitcoin on Bitstamp, Coinbase, itBit and Bitfinex.

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