Bitcoin bubble begins to burst, price plunges 60%

Not sure if it’s the end…but if we make it through and start to get back up in the 200-300 range, people will have to start taking the Bitcoin a little bit more serious…turning point?

The Buzz - Investment and Stock Market News

It may be the beginning of the end for the Bitcoin bubble. The price of the virtual currency, which has increased almost 20-fold this year, plunged 60% Wednesday in the span of just five hours.

Bitcoin prices hit a high of $266 earlier in the day before dropping as low as $105 in choppy afternoon trading. It later bounced back to about $145, but that’s still about 45% below the high.

The currency, which was created by an anonymous hacker just four years ago, has gained particular attention this year in the wake of a mini-bank run in Cyprus  that raised concerns about the health of government-backed paper currencies like the euro and the U.S. dollar.

The rapid run-up sparked speculation about a Bitcoin bubble forming. 

Related: Bitcoins are a bubble

Jesse Colombo, an independent financial analyst and investor who keeps close tabs on bubbles at TheBubbleBubble.com, said the vertical jump in prices…

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