Cryptocurrency
Bitcoin Plummets Below $6,000 to Lowest Level in Over a Year via @crypto
As reported by Bloomberg Crypto, “Bitcoin tumbled below $6,000 for the first time since August and reached its lowest level in over a year, breaking the recent stretch of tranquility exhibited by the notoriously volatile digital alternative to cash. “The world’s largest cryptocurrency tumbled as much as 15 percent, with most of the initial loss […]
As reported by Bloomberg Crypto, “Bitcoin tumbled below $6,000 for the first time since August and reached its lowest level in over a year, breaking the recent stretch of tranquility exhibited by the notoriously volatile digital alternative to cash.
“The world’s largest cryptocurrency tumbled as much as 15 percent, with most of the initial loss coming within a half hour window. It’s the biggest drop since February. Other digital coins slumped, with smaller rivals Ether, Litecoin and XRP dropping more than 17 percent. Bitcoin Cash tumbled as much as 21 percent as the Bitcoin offshoot faces its own split.
“Some traders speculated that investors may be leaving Bitcoin to raise funds to buy Bitcoin Cash after it splits in anticipation that each of the new coins will appreciate.
“Bitcoin dropped as low as $5,322, the least since October 2017, or just before the surge in demand that pushed its price to almost $20,000 in December. It’s down about 70 percent from that record high in the 10-year-old token.
“Two versions of Bitcoin Cash software will be competing to become the dominant chain tomorrow, and some miners could be switching from mining Bitcoin to mining Bitcoin Cash to lend one or the other version support.
“’There’s a potential for when hash rates declines, inherently the network is less secure, and that makes Bitcoin less valuable,’ Travis Kling, founder of hedge fund Ikigai, said in a phone interview.”