Panic Selling Ensues as Bitcoin Value Drops Below $6,000

Bitcoin value dropped below $6,000 on Tuesday, a move that brought the world’s most valuable cryptocurrency within 2 percent of its 2018 low.  At press time, Bitcoin is trading hands at $6,012, printing a 4 percent 24-hour depreciation, according to the CoinDesk.

Ether dropped about 12 percent, sinking from $750 at the start of the year, and an all-time high of $1,400 in mid-January to $290 today.

Litecoin is down about 4 percent over the last 24 hours, plunging from its January high above $300 by more than 80 percent. Meanwhile, all of the 100 biggest cryptocurrencies tracked by Coinmarketcap.com recorded declines in this 24-hour period.

The total market capitalization of cryptocurrencies has dropped to $190 billion, from an all-time high of around $835 billion in January.

Meltem Demirors, chief strategy officer at digital asset manager CoinShares says the prospects don’t look bright because new technologies are changing the paradigm we live in. People are taking longer to understand it.

Bitcoin value price

Panic selling has begun as Bitcoin and other cryptocurrencies show fewer signs of going up.

In the last few days, the Turkish Lira has experienced a plunge after being affected by Trump’s decision to increase tariffs on products such as steel and aluminum. Bitcoin, which has been praised as a safe haven in Turkey, has highlighted its stability during the currency crisis.

According to data from Google Trends, local Bitcoin exchanges have exploded by over 150 percent in this week alone. Despite Turkey’s lawmakers suggesting Bitcoin is not compatible with Islam, local exchanges continue to receive full banking support.

Those exchanges have attracted an uptick in volatility, with operators such as BtcTurk trading the coin at prices around $500 higher per Bitcoin than on foreign platforms.

Bitcoin value has seen a near steady decline since topping $19,000 in December. Even the announcement a week ago that the Intercontinental Exchange would help create an open and regulated digital asset ecosystem brought some volatility in Bitcoin’s price.

Demirors suggests institutional and retail investors should think of cryptocurrency in similar terms to an early internet stock such as Apple, Amazon or Microsoft. Stocks of these companies took years to recover from initial highs after the dotcom bubble burst.

The Bitcoin bubble burst could help with flow of capital that would help build real businesses that serve some real purpose.

It isn’t clear when Bitcoin price will regain value or how blight the market looks like. The progress will be determined based on metrics which are best for measuring cryptocurrency’s growth.

Avatar
Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Mercedes unveils EQS electric sedan to rival Tesla’s models

Mercedes unveils EQS electric sedan to rival Tesla’s models

Mercedes-Benz has unveiled a battery-powered luxury car as part of the brand’s flagship S-Class saloon, designed to compete with Tesla. The 2022 Mercedes-Benz EQS is set to relea
1 day ago
Major US banks report surge in profits for the quarter

Major US banks report surge in profits for the quarter

Three major US banks —JPMorgan Chase & Co., Wells Fargo & Co. and Goldman Sachs Group Inc.—reported earnings results for the first quarter of 2021.
1 day ago
Bitcoin Price surges above $63,000 ahead of Coinbase IPO

Bitcoin Price surges above $63,000 ahead of Coinbase IPO

Bitcoin price has once again soared over $63,000 USD as the cryptocurrency market braces for the upcoming Coinbase IPO. The San Francisco-based cryptocurrency exchange platform, wh
1 day ago
Global ETFs reach a new record of $359.2bn in 3 months of ’21

Global ETFs reach a new record of $359.2bn in 3 months of ’21

Global economy recovery is well on its path going by the money being put in the exchange traded funds, especially in the last quarter. A trillion dollars has entered the traded fun
2 days ago
AppLovin gaming app goes public, valued at $28.6 billion

AppLovin gaming app goes public, valued at $28.6 billion

AppLovin Corp, the Palo Alto, California-based mobile app and gaming company, has priced its initial public offering at $80, which puts the company’s valuation at $28.64 billion.
2 days ago
JPMorgan earnings beat forecasts amid strengthening US economy

JPMorgan earnings beat forecasts amid strengthening US economy

JPMorgan Chase, the largest bank in America by assets reported favorable results on Wednesday, beating analysts’ estimates on trading revenue. It is the first major bank to repor
3 days ago