Bitcoin slumped for a second day Thursday, taking the digital currency’s losses to more than 10% over 48 hours and wiping off billions of dollars from the crypto market.
The price of bitcoin slipped 8% on Thursday to as low as $31,007, falling below the $32,000 level for the first time since Jan. 11, according to data from industry website CoinDesk.
The world’s most valuable digital coin has had a wild few weeks, briefly hitting $41,940 earlier this month before sinking sharply the subsequent week. The reason for its latest move wasn’t immediately clear, but investors told CNBC it is likely a natural correction.
“Corrections are a natural part of any market and are especially natural in the bitcoin ecosystem,” Michael Sonnenshein, CEO of Grayscale Investments, told CNBC. “From 2016-2017, we experienced 6 corrections of approximately 30% or more on the way to new highs.”
Ether, the second-biggest crypto token by market value, was down almost 9% in the last 24 hours at a price of $1,182. The coin hit an all-time high of $1,439 on Tuesday, according to Coin Metrics data.
The total market value of all cryptocurrencies shed more than $100 billion in the last 48 hours, falling from about $1.07 trillion to $918 billion as of 11:45 a.m. ET.
“I think you’ve got to accept there’s a tremendous amount of volatility in bitcoin, and it’s still very early stages,” Anthony Scaramucci, founder of SkyBridge Capital, told CNBC in a phone interview.