LONDON/TOKYO (Reuters) - Bitcoin plunged below $13,000 on Friday after losing around a third of its value in just five days, with the digital currency on track for its worst week since 2013 after a blistering ascent to a peak close to $20,000 on Sunday.
Bitcoin was trading at $13.718,80 on the Bitstamp exchange during the morning in Asia, down from its high of $20,000 seen on Sunday. The cryptocurrency had dipped as low as $14,311 earlier in the day, its weakest level since December 10.
“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London.
“A lot of traders have been waiting for this large correction.”
“With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period,” he added.
Bitcoin has had a difficult week. As warnings about the risks of investing in the volatile and unregulated market have continued to sound louder - with Denmark’s central bank governor calling it a “deadly” gamble - there have been more worries over the exchanges on which cryptocurrencies are bought and sold.
South Korean cryptocurrency exchange Youbit said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year.