Published: Wed, November 21, 2018
Markets | By Jeffery Armstrong

Bitcoin Dropped Momentarily Below $5K

Bitcoin Dropped Momentarily Below $5K

The two continue to fight for supremacy and wage a so-called hash war, as everyone tries to gain computing power and take control of the Bitcoin Cash network.

The value of bitcoin slipped Monday below $5,000 (4,366 euros) for the first time since October 2017 as a broad selloff gathered steam on the opaque cryptocurrency market.

Other cryptocurrencies also fell sharply, with Ethereum's ether losing 10 percent and Ripple's XRP down 13 percent in a largely sentiment-driven slide.

Bitcoin is now trading to its low valuations in the last one year.

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By 11.45 a.m. ET, the benchmark cryptocurrency was trading lower by around 8.5% at $5,164, having rebounded a little from the worst of the day's trading, according to Markets Insider data. This version was incompatible with the mainstream version, creating two separate versions of the bitcoin blockchain with a shared transaction history-a situation known as a hard fork.

For example, digital assets such as Monero (XMR), Tron (TRX), Dash, Iota and Binance Coin (BNB) have recorded an average daily drop of around 16pc.

There are those who think that the price movement isn't exactly just caused by the Bitcoin Cash hard fork. The virtual currency has enjoyed a period of relative stability since early September, hovering between $6,000 and $7,000.

Bitcoin rebounded slightly to trade at US$5,035 at 1730 GMT. Many believed that the market was maturing and people are holding on to their Bitcoin. As bitcoin plunged below $6,000 last week, it's possible that stop-loss orders were automatically going into effect and investors were "trying to play the breakout", eToro Senior Market Analyst Mati Greenspan told CNBC. Although its price has fallen slightly today, it has held up significantly well over the past few days and is only trading down 16% from its monthly highs of $0.54.

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"While the majority of cryptos registered significant losses over the past week, BCH registered the largest weekly losses, falling more than 25 percent".

ETH/USD: In line with Bitcoin, Ethereum also plummeted, also hitting a fresh 2018 low again, after a similar pattern achieved yesterday, following a range of pessimism that emerged in the cryptocurrency industry off late; the day's high was seen at $154.89 and low at $127.00.

Bitcoin Cash is both a rival cryptocurrency to bitcoin and a fork or split-off of cryptocurrency that launched in August 2017.

The most glaring exception to this general trend of increased prices is Bitcoin Cash, which as a result of its hard fork, continue to reel under bear market ramifications and is trading now at 383.3 United States dollars.

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