Bitcoin hits $11K high but quickly drops within 24 hours

Bitcoin is on yet another rollercoaster ride, with its value surpassing the $10,000 and $11,000 mark in a short period of time. This impressive performance is attributed to hype after hitting the coveted threshold but has since lost steam and has now come back to earth. After achieving a 24-hour high of $11,212, the coin is now trading at $10,626, as of writing. That is quite the fall and is seen by some as a sign of increased volatility.

This new development represents a staggering 250 percent increase to bitcoin’s value compared to the beginning of the year, Forbes notes. Traders will remember how far the value of bitcoin fell following the 2017 rush. By December 2018, it was trading at a measly $3,122.34, which was still more than its value in January 2017.

By reaching $11,000, bitcoin has proven that it has lasting power and there are many who see this rise in value as a reason to celebrate. Amulet Managing Director, Marouane Garcon said as much when referring to the fact that bitcoin was able to surpass the $10,000 mark and then subsequently, $11,000.

"$10,000 was an important milestone for a lot of people and I think we’re seeing that as Bitcoin has passed $11,000," Garcon said.

One of the reasons that analysts are attributing this new success to is the matter of investors being afraid of missing out on the rising trend. After bitcoin had gone past $10,000, it became a much more attractive prospect, thus propelling it through another ceiling in just 24 hours.

The fact that it came down just as quickly as it had risen is further proof of this and is a troubling sign of volatility. Across the board, the crypto market appears to be doing quite well. However, bitcoin’s case mirrors its meteoric rise to prominence too much to ignore.