Bitcoin Plummets More Than 12 Percent to Below $15,000
Bitcoin was down 12.6 percent on the Bitstamp exchange at $14,500.76, as of 05:30 GMT, after rising to $16,666.66.
Bitcoin tumbled more than 12 percent in volatile Asian trading on Friday, 8 December, dropping below the $15,000 level after touching a record high above $16,000 earlier in the session.
Bitcoin was down 12.6 percent on the Bitstamp exchange at $14,500.76 as of 05:30 GMT, after rising to a record $16,666.66.
It was still up more than 30 percent for the week, as investors debated whether the cryptocurrency was in a bubble that was about to burst.
This drop comes just hours after Bitcoin rocketed above $15,000 for the first time on Thursday, 7 December, after adding more than $2,000 to its price in fewer than 12 hours.
Bitcoin crested above $16,666 on the Bitstamp exchange, having doubled in value in just two weeks. Other exchanges quoted prices as high as $22,000, intensifying the debate about whether it is a bubble about to burst.
The largest US cryptocurrency exchange struggled to keep up with record traffic as the price surged on Thursday, 7 December, with an upcoming launch of the first bitcoin futures contract further fuelling investor interest.
Proponents say bitcoin is a good medium of exchange and a way to store value, much like a precious metal. They also argue it is preferable to traditional currencies because it is not subject to central bank manipulation.
The supply of bitcoin will eventually be capped at 21 million, and some 16.7 million have already been released.
But critics say that the price run-up is a bubble that has been driven mostly by speculation, leaving bitcoin vulnerable to a sharp reversal.
Bitcoin has seen a more than fifteen-fold surge in its value since the start of the year.
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