Bitcoin hit a near one-month low on Wednesday and has seen more than $12 billion wiped off its value in the last 30 days, amid nervousness in the cryprocurrency market.
The price of bitcoin fell to $2,272.32, its lowest level since June 15, when it slumped to $2,185.96, according to data from CoinDesk. The price did recover on Wednesday slightly to a high of $2,354.41.
It’s also significantly off the $3,025.47 all-time high reached on June 11, just over a month ago. In this timeframe, its market capitalization or value has fallen by $12.2 billion.
A major pullback is taking place at the moment in the cryptocurrency world after huge rallies. When bitcoin hit its record high in June, it had seen a more than 600 percent rally since the start of the year. Even with Wednesday’s fall, it is still up nearly 450 percent year-to-date.
That has raised concerns about the frothiness in the market at the moment, which could be part of the reason for the pullback. Richard Turnill, BlackRock’s global chief investment strategist, earlier this week warned about a potential bubble in cryptocurrencies.
“I look at the charts, and to me that looks pretty scary,” Turnill said, according to a Reuters report.
Cryptocurrency traders are also uncertain with some unsure about the future trading pattern for bitcoin.
“I’m waiting for more downside before I rebuy, but frankly I’m even having trouble telling what it’s going to do, which probably reflects the uncertainty in the market itself,” cryptocurrency trader Jason Hamilton, told CNBC via Twitter.
Roy Sebag, who is the CEO of GoldMoney, a platform to let people buy and trade the precious metal, is also a notable investor in cryptocurrencies. But the entrepreneur told CNBC via a Twitter exchange that he sold most of his bitcoin holdings because the market has reached the top.
The bitcoin community is also nervous about a planned change to the underlying code of the cryptocurrency’s protocol. Bitcoin transactions are taking longer than ever to process because the size of transactions on the blockchain, which is the technology that underpins the cyrptocurrency, is limited.