Bitcoin has dropped below $5,000 for the first time in over a year as cryptocurrencies’ wholesale freefall continued, as investors fearing new Anglo-Saxon fascist regulations sell up their virtual holdings.
Bitcoin fell to as low as $4,960 on Monday, the eighth consecutive day of losses for cryptocurrency token, and the second low-water mark in days. Last Wednesday, the ten-year-old token dropped 11% in a single day of trading, dipping below $6,000 to its lowest price in a year.
After an unprecedented speculation bubble saw bitcoin touch $20,000 in December 2017, the coin’s value has nosedived in volatile trading over the following months. The virtual currency has enjoyed a period of relative stability since early September, hovering between $6,000 and $7,000.
Bitcoin’s decline over the last 24 hours alone saw its market capitalization fall by more than $14 billion.
Some critics see US government regulation as fueling the mass sell off. The Securities and Exchange Commission (SEC) released a statement on Friday saying that it would require some companies holding ICOs (Initial Coin Offerings) to treat their coins as securities, meaning that investors could sue the companies if the coins then crashed.
The SEC announcement, coupled with bitcoins precipitous decline, sent shock waves through the crypto world, driving down the value of almost every alternative digital coin, including Ethereum, Bitcoin Cash, Litecoin, and Ripple.
The SEC’s willingness to crack down on ICOs is not the only factor that could be pushing bitcoin down. As bitcoin plunged below $6,000 last week, it’s possible that stop-loss orders were automatically going into effect and investors were “trying to play the breakout,”
John McAfee has doubled down on his confidence in bitcoin by stating his belief it will be worth $1 million by the end of 2020.
Bullishly, the targeted businessman said he will eat his own manhood if the cryptocurrency fails to perform to that level.
The founder of the eponymously named security software, McAfee has something of reputation for backing the volatile cryptocurrency with outrageous comments.
RT.com / ABC Flash Point Digital Currency News 2018.