Bitcoin rocketed above $19,000 for the first time on Thursday before falling sharply from its record high.
In trading on the Coinbase exchange, the digital currency hit a high of $19,340 before falling more than 20 percent from that level to $15,198.63. At 4:08 p.m. New York time, the cryptocurrency traded at $16,362.99. The price on Coinbase is often at a premium over other exchanges. Coinbase is one of the major cryptocurrency exchanges accounting for a third of bitcoin trading volume.
Bitcoin 1-day chart
"It goes without saying that prices have reached a level where sentiment is exhibiting short-term euphoria," said Mark Newton, managing member at Newton Advisors, in a note to clients. "But to think prices are at mania levels where this could suffer a serious crash here… is a bit ridiculous."
"I truly don't think people are involved on a mass scale yet. We've heard the fraud claims. Now we need people profiting immensely all around us and making forecasts for $1 million, etc., for it to truly have reached a euphoric peak," Newton said.