On Thursday, a bitcoin spinoff called bitcoin cash was suspended from one of the most popular exchanges after possible insider trading. Earlier in the week, a South Korea-based virtual currency bitcoin rise in value was forced to close its doors after falling victim to two attacks by hackers in the space of a few months.
The incidents have raised questions about the reliability of cryptocurrency markets, which aren’t regulated by governments or central banks. But some argue bitcoin is just taking a breather — albeit a big one — after a furious 2017. A correction like we are witnessing today is hardly surprising,” said Dave Chapman, managing director of Hong Kong cryptocurrency trading platform Octagon Strategy. Amid the turbulence Friday, one of the most popular cryptocurrency exchanges, Coinbase, said buys and sells might be “temporarily offline” due to high traffic. The plunge threatens to take the shine off what’s been an incredible year for bitcoin. The rally has been driven partly by the expectation that more and more mainstream investors will begin trading it.
Earlier in December, two major U. Bitcoin’s dizzying ascent has prompted a number of high-profile figures in finance and economics to sound the alarm, cautioning that the currency’s boom is simply a huge bubble. Among them are outgoing Federal Reserve Chairwoman Janet Yellen, who described virtual currencies as “highly speculative. However, Shane Chanel, an adviser at Australian investment firm ASR Wealth Advisers, thinks investors could start shifting their focus to virtual currencies other than bitcoin over the coming months. I feel the cryptocurrency madness is only beginning,” he said. CNNMoney’s Jackie Wattles contributed to this report. Is a Money Market Account or CD Right for You?