It seemed like Bitcoin was all that everyone could talk about last year. Its price hovered around $800 at the start of the year and then saw a meteoric rise to almost $20,000 in December. The price corrected somewhat since then that Bitcoin began trading in the $14,000 – $17,000 range. However, there has been a massive rout in the entire cryptocurrency world this past week which has led to Bitcoin losing over 50 percent of its worth compared to its $19,783 peak on December 17th.
Bitcoin opened the day at just over $11,000 on most major exchanges and then extended its losses throughout the day. It has now dipped below the $10,000 mark and continues to hover under this price. This is the first time in months that Bitcoin has traded below $10,000.
It’s not the only cryptocurrency that got hammered this week. Popular coins such as Ripple, Bitcoin Cash, Ethereum, Cardano, and Litecoin have also posted significant losses in the past few days.
There are a variety of theories about why Bitcoin has fallen so far so fast in the past few days. Some attribute to looming regulation while others blame dampened investor sentiment following the closure of the Bitconnect trading platform which decided to close shop after receiving two cease and desist letters, a deluge of bad press, and DDoS attacks. Some have also accused Bitconnect of running a modern-day version of a Ponzi scheme.
There’s no saying when a rebound in prices scan be expected.