The bitcoin exchange rate plummeted

Bitcoin falls below $4,500 as cryptocurrency's value drops 30% in a week

Bitcoin falls below $4,500 as cryptocurrency's value drops 30% in a week

Bitcoin has lost almost a third of its value in just a week as cryptocurrencies come under renewed pressure.

The cryptocurrency industry has now lost more than US$660 billion in value from a January peak, according to data from CoinMarketCap.com.

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 still-nascent sector is not completely transparent and analysts have struggled to understand what precisely prompted the latest drop. There are now two versions of bitcoin cash: bitcoin cash ABC and bitcoin cash SV. While the markets crashed, most stablecoins have witnessed a surge in their volume - as people are converting their cryptocurrency holdings into stablecoins to ensure their United States dollars holdings remain the same.

For example, digital assets such as Monero (XMR), Tron (TRX), Dash, Iota and Binance Coin (BNB) have recorded an average daily drop of around 16pc. Some analysts and experts are of the opinion that is volatility has been brought on by impact of the Bitcoin cash hard for which took place on November 15th and the "enduring [crypto] bear market", while analysts at Bloomberg have predicted that Bitcoin has further to fall and will trade at as low as 1500 Dollars. Ripple's XRP, on the other hand, seems to have fared better than its rivals. At the time of this writing, XRP is nearly $4 billion ahead of Ethereum in terms of market cap.

Ripple (XRP) has been lagging the market but now is coming under heavy selling pressure and is registering a double-digit loss.

Traders had been hoping to get a big boost with the approval by the US Securities and Exchange Commission (SEC) of a bitcoin exchange-traded fund (ETF). Some of Ethereum's major peers attempted recoveries after the collapse, but Ethereum was mostly on a downward trajectory in the past few days.

The cmessage from deVere Group's founder and chief executive, Nigel Green, comes as leading cryptocurrencies Bitcoin and Ethereum (ETH) were in the red on Monday.

Speaking to Forbes, cryptocurrency investor and trader Altcoin Thoreau said that the crypto market correction can continue further.

Other investors appear to have sold automatically because of stop-loss programs, wrote Mati Greenspan, senior market analyst at trading platform eToro.

"Both groups [Roger Ver and Bitmain's bitcoin cash ABC and Craig Wright and Calvin Ayre's bitcoin cash SV chain] have large war chests of bitcoin and are selling it on the market to subsidize the unsustainable mining of their individual chains - i.e., the expenses now far exceed the revenues made by mining their new chains".

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