Bitcoin is the most volatile currency. Due to its limited supply and growing demand its movements cannot predicted nor be controlled. in one month it has it has raised from $7382 to $11587 i.e. almost 57.2%. So, if any currency can show such a rise in such a short period it can fall with the same pace. Continuous buying and continuous selling patters are not good for the health of any currency. Currency traders earns money from the speculation. They buy on every fall and sell on every rise. So correction is necessary. 50% correction in bitcoin will be a great opportunity for its traders/investors.
It is absolutely possible and there was already precedent I believe in 2013/14 if I recall correctly. The Chinese govermentt through Bank of China outlawed Bitcoin as a means of payment. At the time, Bitcoin was above $1000 and used by Baidu for a massive amount of transactions. Immediately after the ban, Bitcoin nosedived more than 50%... languishing in the hundreds dollar values for years.
When I entered properly in 2016, the 1000 mark was a huge barrier to break, and break it Bitcoin did eventually in 2017... well the rest is history as we are living it.
Took so long to restore confidence after MtGox, Silk Road, the China ban, but just goes to show how vulnerable Bitcoin was and still is.
