Bitcoin edged up in volatile trade on Thursday after having fallen by as much as 3.9% from record highs reached the previous day following the public listing of the crypto exchange Coinbase.
The cryptocurrency fell as low as $62,335 on Thursday in European trading, marking a 3.9% drop from Wednesday’s record, but then rose to stand at $62,690 by 6:02 am Eastern Time based on Bloomberg data.
Bitcoin has hit successive record highs this week, first breaking the $63,000 barrier on Tuesday and then rising to $64,869 on Wednesday, before tumbling to around $61,336 late in the day, based on Bloomberg data.
The cryptocurrency has a reputation for high levels of volatility, which is one of the key reasons many institutional investors and governments are sceptical of investing in or using bitcoin more widely.
Chairman Jerome Powell has stated volatility is the main reason bitcoin will not replace the dollar as a global currency.
Over the past year, bitcoin’s value has accelerated as cryptocurrencies have become increasingly popular amongst investors. Over the past year, it has gained over 850%.
Bitcoin’s valuation rise earlier in the week came ahead of the public listing of the crypto exchange Coinbase on Wednesday, where it now trades under the COIN ticker.
The exchange was valued at $100 billion ahead of its market debut, with a reference share price of $250. It exceeded this price immediately after going public, and eventually settled up 31% at $328.28, making it one of the most valuable companies on the US market.