Bitcoin has crashed under the psychological $50,000 per bitcoin level for the first time since early March, losing 10% over the last 24 hours and taking its weekly losses to around 20%. The bitcoin price fell as low as $48,780 on the Luxembourg-based Bitstamp exchange before rebounding slightly.
The cause of the sell-off, which also tanked major cryptocurrencies ethereum, Ripple’s XRP, and cardano, wiping $200 billion from the combined cryptocurrency market capitalization, was not immediately clear but follows warnings in recent days bitcoin and the wider cryptocurrency market could be headed for a correction.
With bitcoin and cryptocurrency market watchers nervously eyeing price charts, Guggenheim Partners’ investment manager (and long-term bitcoin bull) Scott Minerd has warned bitcoin is “very frothy” and could be about to experience a “major correction.”
“I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd told CNBC.
However, Minerd said he thinks this is part of “the normal evolution in what is a longer-term bull market,” and expects the bitcoin price to eventually rebound far beyond its recent high—potentially climbing to over $400,000.