Now bitcoin is crashing along with the drop in technology stocks

on Jun13

Bitcoin suddenly plummeted Monday, amid increased worries that the young digital currency system is growing too quickly.

The decline came as major U.S. technology stocks fell for a second straight day on concerns that the sector has risen to unsustainable levels.

At least two major bitcoin exchanges also had problems, while a new blockchain project raised a record high level of funds Monday.

“We are seeing greed being exhibited in the open,” said William Mougayar, author of “The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology. “This is not good for the overall ecosystem. Eventually, something more normal will prevail.”

Bitcoin one-day performance

Source: CoinDesk

Bitcoin climbed above the psychologically key $3,000 level Sunday to hit a record high of $3,041.36, according to CoinDesk. The gains were helped by news that several major Chinese bitcoin exchanges were allowing withdrawals of the currency after a months long hiatus.

However, a sharp move lower Monday afternoon ET illustrated how volatile the cryptocurrency can be.

Bitcoin suddenly dropped more than 16 percent on the day to $2,532.87 before recovering slightly, CoinDesk data showed. The digital currency recovered to trade near $2,721 shortly after 9:00 p.m.

Even with Monday’s decline, bitcoin remained more than 150 percent higher for the year so far. The currency first topped the $2,000 level on May 20, less than four weeks ago.

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