BUBBLE Bursting? Bitcoin Plunges Under $6,000, Scaring Many Investors
The most hyped and perhaps dominating digital money in the world has now emerged as the most losing virtual currency of all time.
The last few days has been very spine-tingling for digital currency investors. Prices of the most popular crypto dropped more than 14 pct to $7,200 as of Monday as major financial institutions which include Citigroup, Bank of America, J.P. Morgan, Capital One, Discover, and Lloyds disclose that they have or plan to ban clients from using their credit cards to purchase digital cash like Bitcoin.
Bitcoin was down to its lowest in over 2 months. It retreated to a low of $5,994.57, its lowest since middle of November, based on a report by CoinDesk, whose bitcoin price index monitors prices from 4 key exchanges. Bitcoin, as of presstime, is trading at $6,222.
To make matters worse, China has announced that it will block websites that offer digital currency trading and initial coin offerings (ICO) using the “Great Fire Wall.” This comes after the country banned virtual money exchanges last year.
Dropping, and dropping…
Bitcoin, with a market price of $6,115.46 at 2:45 p.m. HK/SIN, fell more than 11.6 pct on the day, CoinDesk reports. Coindesk measures the price of bitcoin based on a Coordinated Universal Time — currently the same time zone as the United Kingdom. With that drop, it has now shed over 50 percent for the current year.
Bitcoin plunged more than 12 percent yesterday, and now it has further lost its market appeal. Based on investor forecast, Bitcoin has now declined over 56 percent from its value, as it ushered in 2018.
Meanwhile, fellow digital money Ethereum, is likewise feeling the pinch in the last few weeks.
Once considered as the only digital currency of three—Bitcoin, Ethereum, and Ripple as ranked by market cap — to have made considerable advances this year, Ethereum has lost around 15 pct in the past days and now stays at $748.
Ethereum dropped 1 pct year-to-date, while Ripple fell 65 pct in the same period to 72 cents.