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When Bitcoin Falls, So Does The Rest Of The Cryptocurrency Market

Bitcoin lost a third of its value within 24 hours, and that could be bad news for the entire cryptocurrency market.

By: Casey Mendoza

Posted at 5:20 PM, Dec 22, 2017

and last updated 2017-12-22 17:20:36-05

Bitcoin's value plummeted on Friday — and it took some other cryptocurrencies down with it.

On Friday morning, bitcoin's value dropped below $11,000, but then picked back up to around $13,000 by the afternoon. For reference, its price was around $20,000 on Sunday.

Following the rises and falls, Coinbase — a popular cryptocurrency marketplace — disabled trading for more than two hours on Friday. Ethereum and litecoin, two other popular cryptocurrencies traded on Coinbase, took sharp falls in value as well.

This volatility is no surprise to financial experts, many of which are warning of a bitcoin "bubble." Michael Novogratz, a major cryptocurrency investor and former Goldman Sachs trader, told Bloomberg that bitcoin's value could even drop to $8,000.

Novogratz was originally planning to launch a cryptocurrency hedge fund last week. It was reportedly sized at $500 million. He told CNBC the fund was delayed due to "market conditions."