After crashing by more than 13% in a couple of hours last Friday, bitcoin price collapsed below the $5,000 price mark, testing the edges of a further bottom in its price. As of this writing, it is changing hands at $4,908.93, down 12% from its price 24 hours ago. The latest slide in bitcoin’s price means that it is now down by 63.4% from its peak during the second week of January this year. It was at this price range during the beginning of October. In related news,
Other cryptocurrencies also hemorrhaged value. Bitcoin Cash, whose fork is largely being blamed for the downturn in crypto markets, shed 15% of its value from 24 hours ago. It has lost approximately 36% of its overall value in one week. Some claim that shifts in mining power from bitcoin to bitcoin cash resulting in higher valuations for bitcoin cash’s offshoots as a probable reason for trader uncertainty. Others disagree. Bitcoin and cryptocurrencies have also been at the receiving end of critical comments from senior officials. For example, Benoit Coeure, executive board member at the European Central Bank, told journalists that cryptocurrencies were an “evil spawn” of last decade’s financial crisis.
Regardless of the actual reason, other cryptocurrencies have been caught in the cascade of declining valuations. Litecoin, Monero, and Cardano’s ADA were the biggest losers among the top 10 most valuable cryptocurrencies. Not surprisingly, the overall market capitalization for cryptocurrencies also slid rapidly to $164 billion, down by approximately 21% from its value a week ago.
According to eToro analyst Mati Greenspan, the next logical support level for bitcoin is $3,500. “With all the falling prices lately, this definition fits the definition of a buyer’s market,” he wrote to clients.