The price of bitcoin crashed on Wednesday, sending crypto traders into panic.
The cryptocurrency dropped by thousands of dollars in just a few minutes in what’s known as a flash crash.
It’s now trading at around $59,000, down more than $5,000 from the levels it was trading earlier this week.
The drop has wiped hundreds of billions from global cryptocurrency markets.
It has also led to a drop in the prices of a number of other cryptocurrencies, including Ethereum, Binance Coin, Cardano, Solana and Ripple.
It comes a week after Bitcoin hit a new all-time high of close to $67,000.
The crash on Wednesday is partly driven by long-term holders selling at a high to take home profits, according to blockchain data from CoinDesk.
However, the slump is expected to trigger a wave of new buyers tempted by the sudden dip in price.
Bitcoin and other cryptocurrency prices have rocketed in 2021. The combined crypto market is now said to be worth over $2.6 trillion.
Bitcoin alone has added almost 400 per cent to its value since late 2020. However, it has dropped sharply in the past 24 hours.
