The largest U.S. cryptocurrency exchange Coinbase listed last Wednesday (14), driving bitcoin to break through the peak again this week, exceeding $62,500, but with the official listing of Coinbase, Turkey’s ban on payments in virtual currency, coupled with market news that the U.S. Treasury Department will charge several financial institutions with using virtual currency money laundering by the impact, bitcoin Sunday (18) fell below the $52,000 mark.
Bitcoin, which hit an all-time high only a short time ago, plunged more than 15% on Sunday (18), the biggest intraday drop in more than seven weeks.
The world’s largest cryptocurrency plunged 15.1% to $51,707.51 during the day before narrowing to 8.5% at $55,810.32. The second largest cryptocurrency, Ethereum (Ether), plunged nearly 18% intraday, after which the decline also converged.
In addition, the dogcoin (Dogecoin), which was originally created as a joke, rose sharply, making outsiders worry that a bubble has formed in the virtual currency market. According to David Kimberley, an analyst at trading platform Freetrade, the dogecoin surge is a typical example of the “boondoggle theory” being played out, meaning that investors are willing to pay a high price for something regardless of its true value, because they expect there will be more foolish people willing to pay a high price to buy it out of their hands.
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