Bitcoin has just crashed by over $800 and skimmed 15% of the cryptocurrency market value in just over an hour. Bitcoin was trading above $6,000, but suddenly fell to $5,530.
The initial decrease happened in about half an hour, which really shocked the market and Bitcoin investors. Other major alt coins, such as Ethereum and Ripple also tumbled with as much as 18% of their value. It was Bitcoin Cash, however, which experienced the biggest shock – a 21% decrease.
In anticipation of the hard fork of Bitcoin Cash, the cryptocurrency community is probably expecting that the two new coins will increase in value and hence are “divesting” their Bitcoin holdings.
A year ago, in December 2017, Bitcoin was trading for around $20,000 per coin. Now, in November, 2018, the people’s currency is trading for as low as $5,320, a notable 70%+ drop in value.
According to Bloomberg, as Bitcoin Cash faces a hard fork:
“There’s a potential for when hash rates declines, inherently the network is less secure, and that makes Bitcoin less valuable, Travis Kling, founder of hedge fund Ikigai, said in a phone interview.”
While there are other reasons why the cryptocurrency market is going through a “bloodbath” again, the fact is that the value of the digital coin market has gone from almost $210 billion to around $180 in no time.