Bitcoin Collapses to Under $4,000 This Week

05:41 01/11/2019

While blockchain is making a big hit at CES 2019 this year, cryptocurrency bitcoin isn't doing so well. The digital currency dropped 9% on Thursday to under $4,000 again, after seeing big moves over this last weekend. According to data site CoinDesk, bitcoin hit $3,570.29 on Thursday, representing a loss of over 70% in the last year. eToro analyst Mati Greenspan remarked, “it seems to be an exact reversal of the surge that happened on Sunday afternoon.” “The one interesting thing about this movement is that it seems to be an exact reversal of the surge that happened on Sunday afternoon,” Greenspan added. “At this point, the gains made since the start of the year have now been reversed and we’re back to a neutral 2019.” "A few drivers are rumored to be behind the crypto sell-off in the last 24 hours," said David Thomas, co-founder of London-based cryptocurrency broker GlobalBlock. "Firstly, there was a 51% attack on ethereum classic which resulted in the apparent double-spend of $1.1m of ETC. Naturally, occurrences such as these can tend to cause some fear in the market surrounding overall security and confidence surrounding both cryptocurrencies and blockchain technology itself. "Secondly, there was also talk today of a 'whale' moving 319,000 ETH ($68m) onto an exchange today which may well have spooked the market to further sell-offs. Thirdly, ETH has risen off its lows before Christmas by some 80% and any weakness can often lead to a trigger of profit taking from those that managed to catch the lows around $82 in December. "Lastly, it is worth noting that today’s move yet again highlights how volatile digital assets can be and we can expect them to remain volatile, at least until there's further institutional involvement in the space," Thomas said. Cointelegraph had reported that a critical vulnerability that leaked sensitive user data has been discovered but fixed on the Nasdaq-powered cryptocurrency DX.Exchange. Bloomberg Opinion’s Stephen Gandel has said, "It’s been a terrible week for bitcoin. A huge breaking thing is that there is this concept that bitcoin was some kind of port in a storm. That it would be a safer asset because inflation would hurt the dollar and stocks. But we didn’t see that. Damage is one of the main reasons people were buying it for an investment." Bitpay CCO Sonny Singh stated, "Everything built last year was a little overvalued and overhyped. Yet usage is now starting to catch up a little bit, but again new products are launching. Last year was a total anomaly, but I think you are going to see how these new products launch."

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