Bitcoin falls below US$5,000 for first time since October 2017, as cryptocurrencies are crushed again
- Bitcoin slumped as much as 9 per cent, while other cryptocurrencies such as Ether and Litecoin suffered even bigger falls
Cryptocurrencies resumed their slump on Monday, with bitcoin falling below the US$5,000 mark for the first time since October 2017, in the wake of increased regulatory scrutiny of initial coin offerings and the split of one of the largest tokens.
Bitcoin declined as much as 9 per cent to US$4,958, while so-called alternative coins slumped even more, with Ether tumbling as much as 12 per cent and Litecoin cratering as much as 13 per cent. XRP, the token associated with Ripple, was the lone gainer among major digital currencies. The Bloomberg Galaxy Crypto Index fell as much as 8.3 per cent to a one year-low on a closing basis.
Bitcoin rebounded slightly to trade at US$5,035 at 1730 GMT.
Bitcoin opened trading at US$6,326, on a day that saw its market capitalisation fall to less than $100 billion for the first time in over a year.
“The sell-off is related to enforcement, which is almost certainly underway,” said Justin Litchfield, chief technology officer at ProChain Capital. “Projects are being made to return investor money, which, after having spent a tonne of money marketing their US$100 million ICO on a lavish party-filled roadshow that was the norm for this vintage of ICOs, will be tough.”
The sell-off is related to enforcement, which is almost certainly underway