Cryptocurrencies hit hard as Ethereum falls to 16-month low

Cryptocurrencies hit hard as Ethereum falls to 16-month low

Cryptocurrencies hit hard as Ethereum falls to 16-month low

The price of bitcoin dropped sharply overnight, briefly dipping below $5,000 per coin as a brutal sell-off gripping the cryptocurrency market deepened.

The value of a Bitcoin fell to a 24-hour low of $4,721 (£3,668) and still looks a long way short of breaking back above $5,000 (£3,885) any time soon. It seems the trend turned bearish for almost every cryptocurrency, except for USD Coin, QASH and Dai showing minor increase. The upper band and the lower band have both taken sharp turns in the opposite directions, signifying the price drop to continue for more time.

The situation is known in crypto circles as a hard fork. Before the future came into presence, wagering on the decrease in Bitcoin prices was an extremely tough task.

The worries for the cryptocurrency investors grow further as crypto markets entered a DEEP RED correction on Monday, Nov. 19.

It may be a cruel joke to those cryptocurrency fans holding bags of expensive Bitcoin and other altcoins, but all this digital money is on sale right in time for Black Friday.

The price of bitcoin sunk to a 13-month low of $5,141 on Monday, sustaining an 8 percent daily drop less than a week after the price dropped 15 percent in one day.

Ethereum one-hour price chart | Source Trading View
Ethereum one-hour price chart | Source Trading View

There were whales that made a decision to accumulate their Bitcoin after Bitcoin dropped because of the Bitcoin Cash.

Market Update: The Reserve Bank of India (RBI) had earlier imposed a strict ban on cryptocurrency businesses and commercial banks were directed to part ways with all crypto-related businesses, especially those on the exchanges.

Based on the current pace that Bitcoin had acquired over the last few weeks, the final report for December is not looking flattering as the reports are indicating that Bitcoin won't be able to break the resistance of 6,000$, ending 2018 at the new low of 5,300$. Ethereum (ETH) is on an absolute free fall in the last one week losing 30% of its valuation. The startups were penalized after they organized token sales without registering cryptocurrencies as securities offerings.

"The selloff is related to enforcement, which is nearly certainly underway", said Justin Litchfield, chief technology officer at ProChain Capital.

The recent developments on the crypto market - namely Bitcoin Cash hard fork and a holy war of two rivaling camps of Bitcoin ABC and Bitcoin SV supporters - stress the chaotic and immature nature of the industry. If Willy Woo is to be believed, there will be a healthy level of support at $4,400.

The nerves surrounding Bitcoin have also spread to its peers, with numerous main cryptocurrencies experiencing a similarly dramatic double-digit fall.

More news: Explosive California wildfire wipes out town of Paradise

Related news