Bitcoin prices dropped below USD 12,000 on Friday after investors dump the cryptocurrency on reaching USD 20,000 after warnings from experts that it could be a bubble.
Though recouping to USD 14,000 on the Bitstamp platform, it had plunged as low as USD 11,159, a 30% fall, a significant drop since April 2013. It was expected to be a new era of mainstream trading of cryptocurrency with its debut on CME Group Inc, the largest derivatives market in the world, on Sunday but seemed to go the other way.
The best known digital currency has risen many folds in value from standing at just $1000 at the beginning of the year. With growing fears related to security in exchanges trading in Bitcoin, investors are re-evaluating their decisions.
Stocks of American companies whose fortune depends on Bitcoin and its underlying technology, the blockchain, have also been affected by the drop.