The value of Bitcoin has dipped beneath a psychological level below $3500 for the first time in over 14 months as a selloff in cryptocurrencies intensifies across the board.
The king of the cryptocurrency market Bitcoin that hit dizzying heights last year has been facing the wrath of the bear since last month. The currency had plummeted further in value to a new 2018 low of below $3500 mark, taking its total losses to almost 40% in the past month.
At press time, according to data from CoinMarketCap, which aggregates pricing from a wide range of exchanges, Bitcoin (BTC) is sitting at $3426. The break of $4000 was terrible as it is and now a violation of the $3500 price point is further evidence that the worst is yet to come. And considering a 90 percent correction as normal in the cryptocurrency space, a price around $2K might soon be a reality for the leading digital currency.
Last month, CEO of Genesis Trading Michael Moro told CNBC that Bitcoin might have to shed another 30% of its market price before stabilizing somewhere in the $3,000 region.
“You really won’t find the floor until you kind of hit the 3K-flat level,” the Genesis Trading boss told CNBC. “It’s really difficult. There are small levels of resistance… we’ve seen the 4,000 level get tested twice now in the last couple of days, but I really don’t think there is too much in the mid-3s.”
Bitcoin rivals also fell sharply in value
Other major cryptocurrencies including Ethereum and Ripple also continue to plunge. On 6 December 2018, Ethereum (ETH) struck a new 18-month low hitting the $95 valuation –which is roughly where it stood in May last year. Ethereum’s value is now down by a whopping 93 percent from its January all-time high of nearly $1500.
Ripple (XRP) price is also under immense pressure and is hovering at around $30, at the time of writing.