Both bitcoin and Ethereum suffered a dramatic dip in price in recent days, including a flash crash where ether prices went from $317 to 10 cents in just a few seconds, Mashable reported. By Monday morning, Business Insider reported bitcoin also dropped by 4.38 percent.
This isn’t the big bubble burst cryptocurrency critics have speculated about. Both digital currencies are recovering steadily and overall the cryptocurrency market is still quite bullish.
However, these events show how online trends like fake news can impact budding cryptocurrency markets. An unfounded rumor on 4chan that Ethereum creator Vitalik Buterin died in a car crash exacerbated the market drop. Buterin posted a selfie on Twitter, holding a paper with some recent scribbled bitcoin blockchain data to prove he’s still alive and kicking.
While volatility in the Ethereum market can make immediate planning difficult for individual holders, Ethereum co-founder Mihai Alisie said he isn’t concerned about the short-term fluctuations in Ethereum prices. Since the start of 2017, ether prices have increased drastically, but Alisie argued the current trend will be healthy for the platform.
“After such a dramatic short-term increase, I think it is only normal to see some correction,” Alisie told International Business Times. “If we take the beginning of the year as the starting point, you still have a crazy increase from approximately $10 to $200-plus. And that’s with the current dip included.”
During Ethereum’s spike in value this year, the platform has also seen increased attention from outside investors and analysts. In May, more than 86 companies including the National Bank of Canada and the San Francisco Stock Exchange joined the Enterprise Ethereum Alliance. More prominently, digital exchange desk GDAX announced…