Bitcoin suddenly plummeted Monday, amid increased worries that the young digital currency system is growing too quickly.
The decline came as major U.S. technology stocks fell for a second straight day on concerns that the sector has risen to unsustainable levels.
At least two major bitcoin exchanges also had problems, while a new blockchain project raised a record high level of funds Monday.
“We are seeing greed being exhibited in the open,” said William Mougayar, author of “The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology. “This is not good for the overall ecosystem. Eventually, something more normal will prevail.”
Bitcoin one-day performance
Bitcoin climbed above the psychologically key $3,000 level Sunday to hit a record high of $3,041.36, according to CoinDesk. The gains were helped by news that several major Chinese bitcoin exchanges were allowing withdrawals of the currency after a months long hiatus.
However, a sharp move lower Monday afternoon ET illustrated how volatile the cryptocurrency can be.
Bitcoin suddenly dropped more than 16 percent on the day to $2,532.87 before recovering slightly, CoinDesk data showed. The digital currency recovered to trade near $2,721 shortly after 9:00 p.m.
Even with Monday’s decline, bitcoin remained more than 150 percent higher for the year so far. The currency first topped the $2,000 level on May 20, less than four weeks ago.