Bitcoin
prices have been whipsawed during the past few weeks, surging to nearly $14,000 on June 26 before plunging all the way back to about $9,600 on July 2. The price of one bitcoin has since rebounded to just north of $12,000.
Whew! What's driving this breakneck volatility?
Naeem Aslam, chief market analyst with ThinkMarkets FX, said that bitcoin's spike above $10,000 on June 21 sent a strong signal to average retail investors that bitcoin (XBT) was back.
It was the first time bitcoin eclipsed the $10,000 level since March 2018.
Several other cryptocurrencies, including ethereum, XRP, litecoin and EOS, have soared as well.
But Lennon Sweeting, director of institutional trading with Coinsquare Capital Markets, said the recent surge also led to the subsequent drop.
Larger investors looked to quickly cash in on the violent short-term moves.
"There are some key players who hold a lot of bitcoin and can rattle the market," Sweeting said.
