Price of Bitcoin Drops Below $16,000

On Wednesday, the price of bitcoin plunged down by around 20 percent from record highs that were achieved only a few days ago.

According to bitcoin price index (BPI) of Coindesk, the cryptocurrency dropped to as low as $15,577.74,  even though it has recovered somewhat and is trading at more than $17,000 at pixel time. However, it is still around 12 percent off its previous highs.

Rebecca O’Keefe, the Head of investment at interactive investor, said that this could be only “normal volatility. She added that it could also be “that alternative digital options are becoming more attractive to investors and that bitcoin is overvalued.”

“The next few days will be highly significant in establishing whether this dip acts as an attractive buying opportunity or if the bitcoin bubble is deflating as investor focus turns to less expensive cryptocurrencies.”