Bitcoin Drops $300 in One Hour as Price Falls Abruptly and Rebounds

The price of bitcoin may have just topped $3,000 for the first time, but that doesn’t mean the digital asset is leaving its historical volatility behind.

At roughly 10:00 UTC this morning, bitcoin prices fell abruptly, dropping more than $300 in a span of minutes from $2,980 to a daily low of $2,650. The more than $300 decline came just hours after bitcoin climbed to a new high of $3,000 on the CoinDesk Bitcoin Price Index, a weighted average of prices across major exchanges.

But while precipitous, the decline was short-lived, with prices returning to just under $2,900 a half hour later on the BPI.

According to analysts, early indications are the price capitulation could herald that the bitcoin price has diverged too far from fundamentals.

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