Bitcoin fell 8.7% on Wednesday - just as it nearedits highest-ever price - passing $19,000 (14,241) for the first time since its 2017 collapse.
It was joined by other cryptocurrencies in the drop, all of which had been buoyed in recent weeks by strong demand from institutional investors.
Despite the losses, Bitcoin - which remains the most valuable and popular digital currency - has increased its value by more than 100% this year.
Some hedge fund managers have suggested it could hit $100,000 (75,000) in 2021.
Brian Estes, a chief investment manager at Off The Chain Capital, said: "I have seen Bitcoin go up 10x, 20x, 30x in a year. So going up 5x is not a big deal."
Others have warned such predictions are outlandish.
Kevin Muir, a trader based in Canada, said: "Any hedge fund model on Bitcoin is rubbish. You can't model a mania. Is it plausible? For sure. It's a mania. But does anyone actually have a clue? Not a chance."
Bank of England Governor Andrew Bailey recently said he was "very nervous" about people using Bitcoin to make payments.
He has also warned that people who invest in the cryptocurrency should be prepared to "lose all their money".
The highly volatile digital asset set a record high of $20,089 (15,062) in December 2017.
However, in the year that followed its value plummeted more than 80% to $3,200 (2,400).
A Sky News investigation found the fall led to businesses collapsing, marriages failing, and some investors defaulting on their mortgages.
Bitcoin was billed as a peer-to-peer electronic cash system when it was unveiled in a white paper in 2008, not long after the financial crash.
The document was written by a person or group using the pseudonym Satoshi Nakamoto, but their identity remains unknown.
Bitcoin has a maximum supply of 21 million coins that will gradually be released between now and 2140, and fractions of them can be traded.
Some have suggested this capped supply has contributed to recent rises as central banks turn to quantitative easing in light of the coronavirus pandemic, which effectively involves printing new money.
The fact that Bitcoin is traded peer-to-peer at a value determined by the market rather than by a central bank has captured the imagination of economic libertarians, as well as criminals seeking to evade law enforcement.
More:
Bitcoin hopes of record value of over $20,000 dashed after cryptocurrency falls again - Sky News
- Bringing clarity to cryptocurrency - Washington Times - May 21st, 2024 [May 21st, 2024]
- Justice Department Arrests Suspects in Cryptocurrency Money Laundering Case The Presidential Prayer Team - The Presidential Prayer Team - May 21st, 2024 [May 21st, 2024]
- This Man Did Not Invent Bitcoin - The New York Times - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency Market News: Tornado Cash Developer Sentenced to Over 5 Years in Prison - Investopedia - May 21st, 2024 [May 21st, 2024]
- Venture Capital Pours $2.4 Billion into Cryptocurrency Startups in Q1 2024 - The Dales Report - May 21st, 2024 [May 21st, 2024]
- What can I buy with Bitcoin? - Quartz - May 21st, 2024 [May 21st, 2024]
- Wealth of knowledge: Teen recognized for helping educate others about cryptocurrency - The Daily Reflector - May 21st, 2024 [May 21st, 2024]
- What cryptocurrency is the best for businesses? - AMBCrypto News - May 21st, 2024 [May 21st, 2024]
- The Future Of Cryptocurrency In Africa - CIO Africa - May 21st, 2024 [May 21st, 2024]
- This Top Cryptocurrency Could Reach $1 Million by 2030, According to Jack Dorsey - Yahoo Finance - May 21st, 2024 [May 21st, 2024]
- What is Market Manipulation in Cryptocurrency? - UseTheBitcoin - May 21st, 2024 [May 21st, 2024]
- Bitcoin in Focus As CME Reportedly Plans to Offer Spot Trading in the Cryptocurrency - Investopedia - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency Price on May 21: Bitcoin jumps above $71k amid inflows in spot BTC ETFs; Ethereum, Avalanch - The Economic Times - May 21st, 2024 [May 21st, 2024]
- Bitcoin jumps back to over $70K, buoying crypto-tied stocks (Cryptocurrency:BTC-USD) - Seeking Alpha - May 21st, 2024 [May 21st, 2024]
- Brothers charged after $25M in cryptocurrency stolen in 12 seconds - USA TODAY - May 21st, 2024 [May 21st, 2024]
- Bitcoin surges to $71000 level today; what's driving the rally? - Mint - May 21st, 2024 [May 21st, 2024]
- Brothers allegedly steal $25 million in cryptocurrency in 12 seconds - Scripps News - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency: Crucial decision this week for the Ethereum ETF - Cointribune EN - May 21st, 2024 [May 21st, 2024]
- DOJ Charges American Brothers with Cryptocurrency Fraud The Presidential Prayer Team - The Presidential Prayer Team - May 21st, 2024 [May 21st, 2024]
- Is Block Stock a Once-in-a-Generation Buying Opportunity? Yes, But Only If You're Bullish on This Top Cryptocurrency - The Motley Fool - May 21st, 2024 [May 21st, 2024]
- Report: Crypto Spot Trading Slows in April - PYMNTS.com - May 21st, 2024 [May 21st, 2024]
- Genesis to pay $2 billion to victims of alleged cryptocurrency fraud - MSN - May 21st, 2024 [May 21st, 2024]
- Solana, Arbitrum, And BlockDAG: Assessing The Top Cryptocurrency To Invest In 2024 - Blockchain Magazine - May 21st, 2024 [May 21st, 2024]
- Ethereum Climbs 11% In a Green Day By Investing.com - Investing.com - May 21st, 2024 [May 21st, 2024]
- Crypto Processing CryptoCloud: Unlocking the Future of Cryptocurrency Payments with Enhanced Performance and ... - CryptoGlobe - May 21st, 2024 [May 21st, 2024]
- Introducing CryptoGiftCard.io Your Gateway to Cryptocurrency Access for All, Powered by CellPay - Newswire - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency prices today: Check rates of Bitcoin, Ethereum, Dogecoin, Solana - NewsBytes - May 21st, 2024 [May 21st, 2024]
- The Pulse of the Market How Fear and Greed Shape Cryptocurrency Trading - The Daily Hodl - May 21st, 2024 [May 21st, 2024]
- Bitcoin price today: rebounds to $70k on spot Ether ETF speculation - Investing.com - May 21st, 2024 [May 21st, 2024]
- Brothers Anton and James Peraire-Bueno charged with $25m ethereum fraud - The Washington Post - May 21st, 2024 [May 21st, 2024]
- MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme - CBS News - May 15th, 2024 [May 15th, 2024]
- DOJ Charges 2 Brothers With Scheme to Steal Cryptocurrency - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - AOL - May 15th, 2024 [May 15th, 2024]
- MIT-educated brothers allegedly stole $25M in crypto in just 12 seconds - New York Post - May 15th, 2024 [May 15th, 2024]
- DOJ charges 2 brothers tied to $25M attack on MEV bots last year - Blockworks - May 15th, 2024 [May 15th, 2024]
- Brothers indicted for 'first-of-its-kind' cryptocurrency heist - Courthouse News Service - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Sonne Finance developers offer bounty to hacker behind $20 million crypto theft - The Record from Recorded Future News - May 15th, 2024 [May 15th, 2024]
- Brothers indicted over $25 million Ethereum cryptocurrency theft: DOJ - FOX 10 News Phoenix - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Price on May 15: Bitcoin dips below $62k ahead of US inflation report today - The Economic Times - May 15th, 2024 [May 15th, 2024]
- $100 Trillion Market Cap For Cryptocurrency Will Be a Reality: Analyst - Watcher Guru - May 15th, 2024 [May 15th, 2024]
- This Week in Web3: Crypto Payment Rails and Regulatory Clarity - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- Unveiling Fourprime Token Where Innovation Meets Cryptocurrency Revolution - AccessWire - May 15th, 2024 [May 15th, 2024]
- Binance: A Comprehensive Overview of The World's Leading Cryptocurrency Exchange - Blockchain.News - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Likely to Resume Rally: 4 Stocks Set to Gain - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency: Mass Institutional Adoption Underway, with Bitcoin, BlockDAG Network, and Ethereum Value Surge - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - sharewise - May 15th, 2024 [May 15th, 2024]
- Two Brothers Arrested for Attacking Ethereum Blockchain And Stealing $25M In Cryptocurrency - Eurasia Review - May 15th, 2024 [May 15th, 2024]
- 3 Potentially Brutal Cryptocurrency Risks That Most Investors Simply Aren't Ready For - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Crypto customer scammed in alleged HK$1 million hell money scheme in Hong Kong - South China Morning Post - May 15th, 2024 [May 15th, 2024]
- Brothers accused of stealing $25 million in cryptocurrency in 12 seconds - MSN - May 15th, 2024 [May 15th, 2024]
- Solana (SOL) Price Prediction 2024,2025 And 2030 Forbes Advisor INDIA - Forbes - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Warning: Avoid These 3 Failing Names - InvestorPlace - May 15th, 2024 [May 15th, 2024]
- Top 3 Cryptocurrency to Invest Now According to Reddit: Bitcoin, Ethereum, Furrever Token - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Two Brothers Educated In Prestigious University Stole Cryptocurrency Worth $25 Million In 12 Seconds, Feds Allege - Daily Caller - May 15th, 2024 [May 15th, 2024]
- 6 Altcoins To Consider Buying For The Next Bull Run In 2024 - Forbes - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - ThePrint - May 15th, 2024 [May 15th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Market News: Bitcoin Halving Steadies Price, Network Transaction Fees Spike - Investopedia - April 25th, 2024 [April 25th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- 10 Best Cryptocurrencies To Buy In April 2024 - Forbes - April 25th, 2024 [April 25th, 2024]
- Movement Labs raises $38 million to build layer 2 blockchain on Ethereum with Facebook tech - Fortune - April 25th, 2024 [April 25th, 2024]
- Cardano Founder Charles Hoskinson Reiterates Core Purpose of Cryptocurrency Here's What You Need to Know - Cryptonews - April 25th, 2024 [April 25th, 2024]
- From Cryptocurrency to Cannabis: 7 Penny Stocks on the Rise - InvestorPlace - April 25th, 2024 [April 25th, 2024]
- South Carolina: Cryptocurrency scams on the rise in Upstate - WYFF4 Greenville - April 25th, 2024 [April 25th, 2024]
- Binance BNB Memecoin Traders Join 100X New Cryptocurrency On Uniswap - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- The Future of Real Estate: Investing in Tokenized Properties with Cryptocurrency - ForexLive - April 25th, 2024 [April 25th, 2024]
- The Current Position with Cryptocurrency Regulation in the United States - Latest Cryptocurrency Prices & Articles - April 25th, 2024 [April 25th, 2024]
- 3 Must-Know Facts About Ethereum, Before You Buy the Cryptocurrency - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: 3 Meme Coins To Watch In May for Exponential Gains - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- EOS Falls 14% In Bearish Trade By Investing.com - Investing.com - April 25th, 2024 [April 25th, 2024]
- The UItimate Cryptocurrency to Buy With $1,000 Today - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Romance scams involving AI images, cryptocurrency on the rise in Chicago - CBS Chicago - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Event Of 2024: The Aftermath Forbes Advisor Australia - Forbes - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: Top 3 Coins To Buy Now For 10X Gains In 2024 - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- What's going to be different with the halving of Bitcoin this time? - Euronews - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Kaspa Falls More Than 3% In 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]