The Bitcoin price plunged on Tuesday as investors bet the digital currency will overtake gold in value.
The plunge in the currency was the biggest single drop since early December, when a string of major announcements including the announcement that the U.S. Federal Reserve would raise interest rates sparked a price spike.
Bitcoin is up more than 30% this year and has seen gains of over 200% over the past year.
In 2016, when the cryptocurrency peaked, it was trading for $6,000 and was trading at $1,000.
Bitcoin has gained nearly 200% since then.
However, Bitcoin’s value has fallen in recent weeks.
The digital currency has been trading at about $1 per coin.
On Tuesday, the cryptocurrency dropped as much as 3% on Coinbase, a major U.K. exchange.
Bitcoin’s plunge comes as the U,S.
central bank announced it was considering raising interest rates for the first time in almost two years.
The Fed announced it would begin raising rates in late March.
Bitcoin prices have been falling for years and have dropped about 80% in the past decade.
However it is the first rise since the Fed’s interest rate announcement in December, 2017, which saw the currency fall nearly 80%.
In the past, Bitcoin was a safe haven for people wanting to buy and sell digital currencies.
But in recent months, the currency has lost much of its appeal.
The price of a single coin was about $3,000 in March 2018.
In April, it dropped to less than $2.
That’s when it fell nearly 40% to $2,800 in August.
Since then, the price of one coin has fallen by about 30%.
It is still up more recently, though, and is up by more than 40% in a month.