TOKYO: Bitcoin prices plunged by a quarter on Friday as investors cashed out just before Christmas after the wildly volatile currency’s stratospheric rise in recent weeks.
The precipitous drop comes after a series of warnings by analysts and governments about a bubble that could burst at any moment as investors, many inexperienced, piled into the unit hoping to enjoy some of the eye-watering gains.
The controversial cryptocurrency fell to $12,191 from its Thursday price of $16,563.
It is down almost 40 percent down from its record high of $19,500 seen on Monday, according to data compiled by Bloomberg.
The sell-off has bled through to other cryptocurrencies such as Dash, Litecoin and Ripple, all of which were sent plunging.
Stephen Innes, head of trading for Asia Pacific at OANDA, said investors are having a “reality check.”
He added: “At the heart of the matter was a frenzied demand for coins with limited supply has now led to unsophisticated investors holding the bag at the top.”
At its height, Bitcoin had soared almost 30-fold since the start of the year and has moved into the mainstream as two major US exchanges began trading futures in the unit.
And the mania that has swept the Bitcoin universe saw a New York beverage company this week announced it was shifting into cryptocurrency-related investments.
Long Island Iced Tea Corp. of Farmingdale, New York — which says it currently produces the soft drink with a proprietary recipe — said on Thursday it was changing its name to “Long Blockchain Corp” and would explore investments in the technology underlying cryptocurrencies.
Shares in the firm rose 180 percent on the tech-rich Nasdaq following the news.
Bitcoin began looking shaky on Wednesday when it took a 15-percent hit following news South Korean exchange Youbit had been hacked, leading the firm to say it will close and start bankruptcy proceedings. South Korea and Japan are home to some of the largest number of traders in the currency.
The Youbit development came a day after US authorities suspended trading in a popular Bitcoin-related stock, citing concerns on market manipulation.
The Crypto Company’s share price had risen 1,700 percent between the end of September and Monday evening before the Securities Exchange Commission intervened to halt trades until January 4.
There have been numerous warnings about a possible blowout in the Bitcoin market.
Bank of Japan Governor Haruhiko Kuroda said on Thursday that the price surge of the virtual currency was “abnormal,” while Singapore’s central bank advised investors to “act with extreme caution.”
The vice president of the European Central Bank has also expressed concern about the relentless rise in the value of Bitcoin and the potential risk accompanying the trend.
US Federal Reserve boss Janet Yellen has said Bitcoin is not money and called on banks to be certain their digital currency transactions adhere to anti-money laundering statutes.
Bitcoin plunges as investors suffer ‘reality check’
Bitcoin plunges as investors suffer ‘reality check’
Saudi Arabia, Japan trade rises 38% between 2016 and 2024, minister says
RIYADH: Trade between Saudi Arabia and Japan has increased by 38 percent between 2016 and 2024 to reach SR138 billion ($36 billion), the Kingdom’s investment minister revealed.
Speaking at the Saudi-Japanese Ministerial Investment Forum 2026, Khalid Al-Falih explained that this makes the Asian country the Kingdom’s third-largest trading partner, according to Asharq Bloomberg.
This falls in line with the fact that Saudi Arabia has been a very important country for Japan from the viewpoint of its energy security, having been a stable supplier of crude oil for many years.
It also aligns well with how Japan is fully committed to supporting Vision 2030 by sharing its knowledge and advanced technologies.
“This trade is dominated by the Kingdom's exports of energy products, specifically oil, gas, and their derivatives. We certainly look forward to the Saudi private sector increasing trade with Japan, particularly in high-tech Japanese products,” Al-Falih said.
He added: “As for investment, Japanese investment in the Kingdom is good and strong, but we look forward to raising the level of Japanese investments in the Kingdom. Today, the Kingdom offers promising opportunities for Japanese companies in several fields, including the traditional sector that links the two economies: energy.”
The minister went on to note that additional sectors that both countries can also collaborate in include green and blue hydrogen, investments in advanced industries, health, food security, innovation, entrepreneurship, among others.
During his speech, Al-Falih shed light on how the Kingdom’s pavilion at Expo 2025 in Osaka achieved remarkable success, with the exhibition receiving more than 3 million visitors, reflecting the Japanese public’s interest in Saudi Arabia.
“The pavilion also organized approximately 700 new business events, several each day, including 88 major investment events led by the Ministry of Investment. Today, as we prepare for the upcoming Expo 2030, we look forward to building upon Japan’s achievements,” he said.
The minister added: “During our visit to Japan, we agreed to establish a partnership to transfer the remarkable Japanese experience from Expo Osaka 2025 to Expo Riyadh 2030. I am certain that the Japanese pavilion at Expo Riyadh will rival the Saudi pavilion at Expo Osaka in terms of organization, innovation, and visitor turnout.”
Al-Falih also shed light on how Saudi-Japanese relations celebrated their 70th anniversary last year, and today marks the 71st year of these relations as well as how they have flourished over the decades, moving from one strategic level to an even higher one.
