Bitcoin falls to a three-week low due to a sudden crypto drop
Cryptocurrencies fell sharply on Friday, with bitcoin falling to a three-week low. Bitcoin dropped 7.7% to $21,404 in a few minutes during the European morning, around 0640 GMT.
It recovered slightly before continuing to fall, trading around $21,400 at 1138 GMT, down 8.2% on the day.
"It doesn't fit the pattern of a flash crash because the assets didn't immediately rebound sharply" said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
According to Streeter, the cryptocurrency cardano appeared to be the first to move, followed by bitcoin and ether, and then other altcoins such as dogecoin.
On June 15, bitcoin fell more than 15% as investors were alarmed by the collapse of a so-called stablecoin, TerraUSD, and the freezing of customer withdrawals by a major crypto lender.
"Speculating in cryptocurrencies is extremely high risk and is not suitable for the vast majority of people," Streeter of Hargreaves Lansdown said.
Ether fell around the same time, and it was last down 8.8% at $1,685. The reason for the drop was unknown. “ It does not exhibit the pattern of a flash crash.