#Fintech

Bitcoin takes a $4bn hit after market cap price correction

Cryptocurrency Bitcoin saw a price correction wipe out around $3.4bn of value, with prices falling by 18.7% due to the revised market cap. It was a rev...

Callum Rivett
|May 30|magazine4 min read

Cryptocurrency Bitcoin saw a price correction wipe out around $3.4bn of value, with prices falling by 18.7% due to the revised market cap.

It was a revision that saw the cap reduced from $40.49bn to $37.08bn in less than a week, which was then coupled with a $520 drop in the price of one Bitcoin. 

The digital currency had previously hit a new record high but failed to break through the $2,800 barrier, falling just $9 short before plummeting towards the $2,267 level.

However, it is unlikely to dissuade investors, with predictions that in the long-term Bitcoin could reach as high as $6,000 thanks to influences in the Asian market - particularly the fact that it has recently been declared a legal currency in Japan.

Despite the recent blip, Bitcoin has been trading about 200% higher than what it was at the start of the year.

Bitcoin is trading 200% higher than what it was at the start of the year

Ultimately, the easiest way to acquire Bitcoin is to purchase it from a friend or known acquaintance - mining the currency requires a vast amount of energy and computing power that would likely drain away any potential profits to be made.

The surge in popularity of cryptocurrencies is replicated with Ethereum, which has seen similar levels of growth. Having cost $8 in January, the decentralised currency started climbing in March and recently hit the $224 mark, before falling and then rising again and is currently climbing at $211.