In the past week, Bitcoin investors have shed roughly $67 billion in value, and Ethereum, litecoin, bitcoin cash, and ripple are all posting double-digit percentage losses on Tuesday morning.
The total value of Bitcoin in circulation is now around $125.8 billion as some investors worry about the digital coin’s long-term viability without the tacit support of major financial institutions. It’s an even darker day for investors who may have bought into the asset at its peak of over $19,500 in December. Since then, the value of their stake has fallen 63%.
Today, the digital currency fell to a low of $5,947.40, its lowest since mid November, according to CoinDesk, whose bitcoin price index tracks prices from four major exchanges.
“To say bitcoin investors have not enjoyed the best start to 2018 would be an understatement, and the cryptocurrency’s struggles have continued today as it dipped under $7,500 for the first time since it first crossed the threshold in November," said Dennis de Jong, managing director at UFX.
The latest sell-off follows reports in the last week that have raised worries about increased regulation, hackers and potential price manipulation at a major cryptocurrency exchange.
On Friday, J.P. Morgan Chase, Bank of America, Lloyds Bank, Bank of Scotland, Halifax, MBNA, Virgin Money and Citigroup also said they have decided to ban cryptocurrency purchases by their credit card customers.
The decline follows reports in the last week that have raised worries about increased regulation and potential price manipulation at a major cryptocurrency exchange.
However, some market analysts have taken a more neutral stance, asserting that the digital currency markets are simply going through the natural ups and downs.
Bruno Skvorc, CTO and lead blockchain developer for CryptoHunt said in an article on Forbes that, "The current overall market has been in a downtrend for sure, however, this downtrend is a natural cycle of any market, especially one that say parabolic growth like we saw in Sept-Dec."