Cryptocurrency

Bitcoin tumbles below $5,000 for the first time since Oct 2017

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Bitcoin and Bitcoin cash led a sharp selloff in cryptocurrencies on Tuesday after a hard fork of bitcoin cash and uncertainty about the future of the digital market.

The Bitcoin is meanwhile trading 13.80% down at $4,677.21, falling below the $5,000 level for the first time since October 2017.

Bitcoin cash tumbled 42.90 percent to $213.59.

Many analysts have blamed the bitcoin cash split into two new cryptocurrencies, bitcoin ABC and bitcoin SV, for the recent tumble as it added to concerns about inability of the virtual currencies to act a store of value.

U.S.-based cryptocurrency exchange Kraken has warned users against potential risks of trading bitcoin SV.

The fall below $5,000 could boost speculations the digital currencies market will collapse, as the Bitcoin and altcoins are extending losses from 2017 peaks.

The Bitcoin has so far lost 76 percent from its all time high of nearly 20,000 recorded in December 2017.

Monero and Cardano dropped 17.34 percent and 16.65 percent respectively, while Ripple soared 0.38 percent.

Cryptocurrencies came under pressure on Friday after the SEC announced its first civil penalties against two cryptocurrency that did not register their initial coin offerings as securities.

The total market capitalization for cryptocurrencies meanwhile stands at $152 billion, compared to $209 billion a month ago, wiping off 81.5 percent from January’s peak.

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