Bitcoin had just recovered from its price drop last month, and it again has faced a plunge in its value by more than 10%, on Wednesday. The currency valued the lowest, since October 2017, now trading around $5500. In the past one year, the value of Bitcoin was fluctuating around $6600.
Bitcoin’s price plummetted to $5,534 on the Luxembourg-based Bitstamp exchange, but soon, regained to a somewhat higher value. But still, it has not reacquired any of the previous values, lowering down the values of other cryptocurrencies, as well, including Ethereum’s Ether down to almost 13%, Bitcoin Cash down to 8.7%, and XRP (Ripple) to 9.2%. Since last year’s October month, the market cap for Bitcoin has first time fallen below $100 billion, and the total market capitalization for the same now stands at $96 billion. The total market capitalization for the cryptocurrency combined now stands at $181 billion.
Charlie Hayter, the founder of crypto data website Cryptocompare, said, “The market had been entering a wedge, with the volatility so low. What you are seeing low is a breakout on the downside. Sometimes when things happen, it takes a while for the true reason to become clear – an exchange trade or regulatory action.”
Bitcoin has provided some multimillion deals to people making them rich, but, most of the crypto experts are aware of the volatility of Bitcoin. The so-called “hard fork” scheduled for yesterday, in bitcoin cash, is being considered as the reason behind the huge plunge in the price of the Bitcoin. A hard fork includes the splitting up of one cryptocurrency into two, and it is acknowledged as the upgrade of the cryptocurrency by the crypto experts.
The crypto market has been calm for the past few years, but 2018 has been an unfavourable year for the cryptocurrency. The Bitcoin Cash, itself, is the resultant of the first Bitcoin hard fork, and this time the hard fork will leave the investors with two digital currencies that will go by the names Bitcoin ABC (core Bitcoin Cash) and Bitcoin SV. Some experts contemplated that investors may leave Bitcoin to raise funds to buy Bitcoin Cash after it splits in hope that both of the new coins will experience.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.