The Bitcoin digital currency was going strong on Thursday morning breaking the much expected $1000 barrier. While the market was starting to see Bitcoin as a more viable currency for transactions, the cryptocurrency proved its volatility again by plunging 20% lower. The Bitcoin price index increased hugely, making it become the best performing currency for 2016. However, in the afternoon of Thursday, Bitcoin started trading at $950.50. This has resulted in a $180 loss in a single day.
Ever since the introduction of Bitcoin in 2009, the digital currency had been volatile. It reached an all-time high of $1165 in 2013. It lost about 75% of its value later. When the news about hackers stealing Bitcoin hit the market, the value of the digital currency plummeted to new lows. Experts predicted that Bitcoin will soon pick up its pace and continue to grow as more coins are introduced to the market. The rise of the digital economy also supported the growth of the cryptocurrency which resulted in Bitcoin increasing in value.
The weakening of Chinese Yuan and strengthening of the dollar has motivated the market to show interest in the digital currency. The demand continued to increase as there was a limitation on the supply of bitcoins. The total amount of bitcoins is finite and more than 75% of the 21 million bitcoins are already mined. Some experts predict that the value of one bitcoin will easily surpass $3000 by the end of this year.