A difficult 'minute' for Bitcoin investors, as the cryptocurrency's value plummets by 87%

Bitcoin has recently hit near-record prices. (Getty Images)

Bitcoin investors were alarmed Friday night when the popular cryptocurrency's value plunged by 87 percent.

On Binance, Bitcoin dropped from a near-record price of US$65,815 to US$8200 ($88,035 to $10,968).

Binance admitted an error had happened, and the price immediately recovered to virtually its previous value.

"One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off," the business claimed in a statement to Markets Insider.

It comes after Binance CEO Changpeng Zhao issued a warning about excessive cryptocurrency volatility.

Mr. Zhao, better known as CZ, stated on Twitter, "Expect very high volatility in #crypto over the next few months,"

Despite continuous criticism from JPMorgan Chase CEO Jamie Dimon, who recently called bitcoin "worthless," some investors are now anticipating even higher increases for Bitcoin.

"Given the price momentum we are seeing on the back of bitcoin's ETF, we believe that Bitcoin can easily go all the way to (US$100,000) by the end of this year," Naeem Aslam, chief market analyst of AvaTrade, said in a report this week.

Publish : 2021-10-22 10:49:00

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