Bitcoin is on the downward spiral for investors this week — it has lost more than a third of its value from its record high of nearly $20,000.
On Friday, it fell below $11,000, according to the Coindesk exchange website, before readjusting to about $12,000.
Charles Hayter, founder and chief executive of industry website Cryptocompare, said: “A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes.”
The currency’s price at the start of the year was $1,000.
Trading on Friday got so rough that both exchanges, the CME and the CBOE, stopped trading temporarily.
Banks nor the government stand behind the currency and have called it a bad unsecured investment.
Wall Street Mogul, Jordan Belfort told CNBC, The bitcoin “was a huge danger.”
“There’s no regulation on the actual level of bitcoin itself,” he tells CNN’s Richard Quest. “Yeah there’s futures regulation but the underlying asset is completely unregulated. It’s a dark market.”
“I think it’s a huge danger right now that people are looking at this as the next great thing,” he tells CNN Money. “It’s a bubble for sure.”