Bitcoin price plunges below $16,000

 
Lynsey Barber
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Bitcoin Continues To See Unprecedented Growth
Volatility is high for bitcoin (Source: Getty)

The price of bitcoin plunged on Wednesday, down around 20 per cent from record highs achieved just days ago.

The cryptocurrency fell as low as $15,577.74, according to Coindesk's bitcoin price index (BPI), though recovered somewhat and is trading at over $17,000 at pixel time, but still around 12 per cent off previous highs.

Read more: Bitcoin not a threat to financial stability say economists

Head of investment at interactive investor Rebecca O'Keefe said this could be just "normal volatility" but it could also be "that alternative digital options are becoming more attractive to investors and that bitcoin is overvalued".

"The next few days will be highly significant in establishing whether this dip acts as an attractive buying opportunity or if the bitcoin bubble is deflating as investor focus turns to less expensive cryptocurrencies."

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