What History Says About Bitcoin’s Crash This Week

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Bitcoin has risen more than fivefold over the past year as interest built up little by little.

Large hedge-fund investors bought in, and financial companies like PayPal (ticker: PYPL) allowed customers one-click access. The crash of the past week, however, has occurred with a ferocious velocity—a byproduct of the large amount of leverage and forced selling still in the market today.

For…