Bitcoin and other digital currencies plunged Thursday, a slide likely to stoke speculation about the durability of the boom in cryptocurrencies.
Bitcoin slumped as much as 8.7%, the most since early August, while other digital coins like Ether posted double-digit percentage declines.
The Bloomberg Galaxy Crypto Index at one point slid more than 6%.
“Conditions are very massively overbought and bound for a correction,” said Vijay Ayyar, head of business development with crypto exchange Luno.
“So I don’t think it’s unusual frankly. I still believe we’ll see all-time highs before a larger drop/correction.”
Even with the retreat, Bitcoin has more than doubled this year and until recently was knocking on the door of the record high of $19,511 set in 2017. Crypto believers tout purchases by retail investors, institutions and even billionaires, as well as the search for a hedge against dollar weakness, as reasons why the boom can last.
Skeptics argue that the cryptocurrency’s famed volatility portends a repeat of what happened three years ago, when boom turned to epic bust.