The value of the bitcoin has declined below the $5,000 mark for the first time within a period of 13 months as the cash split of bitcoin continues to weigh heavily on cryptocurrencies.
Bitcoin is considered the largest cryptocurrency in the world in terms of volume. Today, its value declined by 13 percent to lows that reached $4,827. Meanwhile, according to data from Bitstamp, a cryptocurrency exchange that is based in Luxembourg, ethereum and ripple also dropped to yearly lows amounting to $147.16 and $0.46 respectively.
The move marks the lowest value of bitcoin since October of the previous year. It is currently down by more than 70 percent since the height of the cryptocurrency bubble in December 2017.
The slide started last week, as bitcoin dropped below the $100 billion market capitalisation for the first time since the bubble.
It is considerably attributed to the uncertainty in the market after the so-called hard fork of bitcoin cash. Bitcoin cash is noe split into two new currencies: bitcoin SV and bitcoin ABC.
Bitcoin cash itself was forked away from bitcoin in August 2017. It comes after disagreements on how to scale the digital asset.
Mati Greenspan, an analyst from Etoro stated: “The breakout we saw last week served to many analysts as confirmation bias that the bear still has legs.”
He added: “The incredible rise of 2017 has sent the markets higher than can logically be supported by real-world adoption and so now we’re seeing a retracement of that.”
The price of the cryptocurrency had previously appeared to have stabilised in recent months after sitting between the $6,000 and $6,800 mark since September.
Greenspan continued: “What’s interesting to note is that the latest move coincides with strong volatility in the stock markets and a US dollar that is strengthening on Fed policy.
He concluded: “As with all things, what moves prices is sentiment and for the moment, it seems to be decidedly negative.”