A virtual currency known as bitcoin collapsed around the world on Thursday after a massive price correction on its most popular cryptocurrency, according to data compiled by Bloomberg.
The cryptocurrency, which gained more than 2,300 percent in value in less than 24 hours, had gained about 2.5 percent in the past 24 hours on Friday.
“This was a massive rally,” said David Toth, a New York-based digital currency strategist.
“If bitcoin were going to crash today, it’s going to go down tomorrow.”
Bitcoin, which is traded on exchanges like Mt.
Gox and Bitstamp, has gained nearly 5,000 percent in 2017, according the website CoinMarketCap.
That makes it the most-valuable cryptocurrency on record, outpacing the Dow Jones Industrial Average.
It also overtook the Dow in late May, when the price of bitcoin was trading at about $3,500 per coin.
That price jumped to more than $1,500 on Wednesday, according a CoinDesk analysis of data from CoinDesk.
Bitcoin is the currency that has gained the most value since 2009.
The rally in the bitcoin price came just days after U.S. lawmakers passed legislation that would allow businesses to issue their own digital currencies.
It has also led to some speculation that the currency could eventually become a legitimate means of payment for goods and services.
On Wednesday, the U.K. Treasury released a report that said digital currencies could become the primary means of funding payments in 2020.
That would make them a better alternative than cash and other traditional financial instruments, according, according.