Cryptocurrency falls below $ 5000 for the first time in 13 months


Bitcoin fell below $ US5000 for the first time in 13 months.

Cryptocurrency has plummeted by nearly 14% in the last 24 hours to trade at $ US4843 at the start of Tuesday, almost 25% less than a week ago.

It came in a broader sell-off than swept to nearly $ 24 billion from the market capitalization of over 2000 tokens tracked by Coinmarketcap.

Bitcoin has not traded at $ US5000 since October 12 last year when it crossed the finish line briefly during its run to a record high of $ US20,000.

The digital currency swung around the US $ 6000 sign for most of 2018, after the entire cryptocurrency market crashed at the start of the year, but many fans believed it would not be fell again below $ US5000.

Ripple, the second largest cryptocurrency, was down nearly 6% at the time of writing, while ethereum had lost nearly 16%.

The latest wave of sales was driven largely by fears that the so-called "hard fork" on Thursday's bitcoins – dividing bitcoin into controversial terms in two separate currencies – would have destabilized the market.

The rival forks are supported by two of Crypto's biggest names, Roger "Bitcoin Jesus" Ver and Australian computer scientist Craig Wright, who claims to be the mysterious inventor of the bitcoin "Satoshi Nakamoto".

"There are two different fields," said Egor Sidelska, director of the Australian cryptocurrency fund, Magnet Capital.

"Initially they were together focused on the bitcoin money and the argument basically started where one said" I'd like to take the code in the X direction "and the other said" I'm not d & # 39; I agree, I'd like to take the code in the direction Y.

"It is the case that these two individuals are relatively famous in the cryptic scene, which also have a large percentage of crypts and that have an influence on the mining basins.

"Mining pools are important because they control hashpower The more you have the strength, the more influence you have on the network, when the two chains divide, the chain with the most hashes is considered the" winner ".

"What happened was that one threatened the other with network attacks, there are several, but what he threatened is using his hashpower to extract the empty blocks on the opponent's chain. make the network clog. "

Mr Sidelska said that although the hash war has been "disproportionately inflated" and has only hit people who own coins in the bitcoin liquidity chain, this has led to "speculation and fear".

"If you have a situation where you have a person who can start to manipulate and openly attack an entire network, it's just a powerful negative influence," he said.

"At the moment the market is not driven by positive news, it is disproportionately affected by negative news due to the bear market in which we find ourselves."

At the start of this week, Bloomberg analysts predicted that the price of bitcoin could fall to $ US1500, but Sidelska believes that "there will be some kind of rebound" outside its current level.

According to Fred Schebesta, co-founder of Finder and broker encryption service, buyers have "lost the fear of losing".

"It's easy to buy bitcoins now and realistically today, there's little difference with technology among all the coins," he said in an e-mail.

"There was not enough time to demonstrate technology, so people sell because they lost hope in the narrative and in the dream of cryptocurrency." People have also lost more than 90% of utility currencies & # 39; mania & # 39 ;.

"As bitcoin is trying to be a store of value, it's very hard to believe when it drops 25% in a week.

"In addition to bitcoin, we will not see the same first 20 coins in 12 months.We have to find a new use case in addition to bitcoin.This is coming in. Because in 2012, when everyone stated that Internet advertising is dead, Google was building AdWords. "

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