As a decentralized cryptocurrency, Bitcoin is very volatile.
After showing good progress back in 2017, it slumped tremendously low the next year, before bouncing back up.
Then, after what seemed to be a promising investment, Bitcoin as the largest cryptocurrency, fell again to $30,525 from 41,452, in one day.
And this time, Bitcoin again slumped, as it is taking huge losses to more than 10% over 48 hours to as low as $32,527, falling below the $33,000 level for the first time since January 13.
As a result, Bitcoin effectively wiped off $100 billion from the total market valuation of all cryptocurrencies, plummeting it from about $1.06 trillion to nearly $949 billion as of 9:20 a.m. London time.
That according to data from industry website CoinDesk.
Bitcoin bulls said that the main reason for Bitcoin's sudden upward momentum over recent months can be attributed to the rise of institutional demand for the digital coin.
Well-known investors have come out as Bitcoin believers, while some asset managers are starting to add it to their portfolios.
The cryptocurrency's remarkable surge was also caused by it is compared to gold in terms of investment in times of unprecedented economic stimulus.
But some Bitcoin critics however, called this moment as the "Bitcoin a bubble".
Those people consider the bubble as a proof that Bitcoin's growth rate is not sustainable. While cryptocurrencies in general will mature, to them, Bitcoin in particular exists largely as a speculative asset.
Because of this, those people don't consider Bitcoin to ever serve as a viable currency alternative.
Bitcoin was created back in 2009 by Satoshi Nakamoto. The main difference between the digital coin and other assets is that, the cryptocurrency is designed to be decentralized, meaning that it doesn't need a central authority to control it.
