Bitcoin prices fell to less than $10,000 today, down close to 30% from their recent high of nearly $14,000 reached on Wednesday, June 26th.
The digital currency dropped to $9,986.26 at roughly 11:40 a.m. EDT, CoinDesk data shows.
At this point, the cryptocurrency had declined approximately 28% from its price of $13,879.24 on June 26th, additional CoinDesk figures reveal.
The digital currency suffered notable losses shortly after approaching $14,000, breaking through the $13,000 and $12,000 levels in less than two hours.
‘A Bucket Of Ice Water’
Mati Greenspan, a senior market analyst for social trading platform eToro, described last week’s drop as a positive development.
He likened the downward movement to “a bucket of ice water that was dumped on the anxious crypto market, which was indeed getting a bit too hot.”
Several analysts depicted today’s bitcoin losses in a similar fashion, with John Todaro, director of digital currency research for TradeBlock, stating that “this recent pullback is providing a much-needed breather.”
“Bitcoin was becoming overheated as prices went nearly parabolic for a span of a few days,” he added.
Bitcoin’s Recent Pullbacks ‘Healthy’
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, offered a similar point of view, stating that:
“The pullbacks are healthy and are preventing an unreasonable climb.”
He added that “Moreover, altcoins as a whole are not losing so much value in terms of BTC prices, which indicates that sellers are not moving out of crypto into fiat but merely balancing portfolios.”
Going forward, Todaro sounded hopeful that the volatility of cryptocurrencies will remain relatively subdued.
“It would be ideal if the asset class cooled off some, and traded in a range of $9-11k, as the recent move to $13.5k was very quick and risked burning out in a significant correction,” he stated.
“A longer term, sustained move to the downside, however, could prove troublesome as it erases much of the positive sentiment that has come into the space over the last few months,” added Todaro.
This story originally appeared in Forbes. Image courtesy of Shutterstock.