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Bitcoin Price Crashes to Lowest Level Since May 2017

June 15, 2017 at 23:24 by Yahia Barakah

The price of Bitcoin saw a sharp decline on Thursday in a strong corrective move to gains that pushed the price of the digital currency to more than triple in 2017. Today’s decline added to the most negative week for Bitcoin since the beginning of 2015, as investors worried that the virtual currency may further plummet before finding a floor to stabilize at.

On Sunday, the digital currency was within less than $20 from the $3,000 level, which would have marked more than 200% gain since the price of a single Bitcoin was $997.75 on January 1. However upon nearing that level, anxiety about an impending crash began spreading between investors, notably after Goldman Sachs Group Inc. published a report that weighed on technology stocks this week.

The report stated that investors may feel compelled to ignore certain risks due to the low volatility in stocks of the biggest names in the tech sector. The warning aligned with a note written by a Goldman Sachs analyst earlier this week that stated that Bitcoin will probably reverse some of its recent gains.

Bitcoin lost roughly 15% of its value on Thursday and about 20% so far this week to reach the lowest level in 3 weeks, before recovering some if its losses near the end of the day. The volatile movement came as traders collected some of their recent profits while they reassess Bitcoin’s ability to maintain its latest highs.

One of the reasons behind the pause for reassessment of the market conditions was a number of cyber attacks earlier this week that targeted major Bitcoin exchanges. Bitfinex, one of the largest Bitcoin exchanges in the world, came under DDoS attacks on Tuesday, which attempted to bring the exchange’s system down.

The attacks followed an outage that Bitcoin exchange Coinbase faced on Monday and similar DDoS attacks against servers of the BTC-e exchange on Tuesday. These attacks raised concerns between investors about whether major Bitcoin exchanges have the means to provided safe environment and uninterrupted performance for the digital currency to flourish.

BTC/USD traded at 2,413.6 on the Bitstamp exchange as of 23:10 GMT on Thursday from 2,121.1 at 13:55 GMT, the pair’s lowest level since May 29. BTC/USD began trading today at 2,441.0, and started the week off at 2,899.0.

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