The markets have just opened, but there is already a lot of news getting pumped out to the world.
The value of bitcoin tumbled almost 30 percent during a volatile session Friday, testing investors who have recently sent the cryptocurrency to astronomical heights and marking a major drop for the largest virtual currency in a highly volatile market. While it would be easy to infer that the price fluctuation of bitcoin is the reason for the trading stoppage on the popular digital currency exchange, but Coinbase said it has to do with "today's high traffic". Even though Bitcoin made its way back to trading close to $12,750 mid-morning, this is still pretty shocking considering it was only last week that the digital currency soared above the $19,800 mark. The stock closed 11.2% lower at $24.52 a share Friday.More news: Long Island Iced Tea Corp changes name to Long Blockchain
Former Goldman Sachs Group Inc (NYSE:GS) macro trader, Michael Novogratz, said that he is halting his plans of starting a cryptocurrency hedge fund and has a bad feeling that Bitcoin could hit $8,000 soon.
Bitcoin futures also tumbled Friday.
That follows an earlier statement from the company that all buys and sells were temporarily disabled. The Coinbase team is reportedly looking into the problem.More news: Diddy wants to buy the Carolina Panthers and sign Colin Kaepernick
On Wednesday, investors were spooked after Coinbase announced an internal insider trading probe into its Bitcoin Cash debut.
Coinbase has struggled in recent months to keep up with high demand. Although Bitcoin Cash has seen less extreme growth in valuation than Bitcoin, which skyrocketed past $15,000 per coin this month, Bitcoin Cash's value has steadily risen.
On Monday, Denmark's central bank governor called Bitcoin a "deadly" gamble and told investors not to "come and complain to us if it goes wrong".More news: New York Islanders moving back to Long Island