In the first half of the year, Bitcoin (BTC) went on a remarkable rally that raised hopes of a similar rally like the one in 2017 that took the token’s price to $20,000. However, things have not gone as many had hoped, and since the month of July, the world’s biggest cryptocurrency has lost its momentum.
This week has been a particularly shattering one for BTC as it plunged to new depths and the most worrying bit about the nosedive is the fact that most traders are not sure about the reason behind it.
Bitcoin Falls $3K in Two Weeks
A few months back, the token had been trading at $13,000 apiece, but the situation has not been great since then, and according to experts, the recent plunge could be the start of a longer downturn. During the latest meltdown, Bitcoin dropped to the $8,000 level, and although it has been able to hold onto this level, traders are not sure how long that will continue.
Over the past few weeks, the crypto sphere has been a unique space, and BTC has been trading within a range. The calmness in the markets was primarily down to the fact that many traders were waiting for developments pertaining to regulations.
Many cryptocurrencies suffered losses on Tuesday this week, but it was BTC that suffered historic losses. It dropped below the level of $9,000 for the first time since June and lost as much as 17% of its value. The 17% loss remains the biggest loss that BTC has suffered in a single day since back in January of 2018.
The slump continued on to Wednesday as well and the week has turned into a bit of a crisis for BTC holders. Although a wide variety of explanations were put forward by experts, no explanation has been able to explain the dramatic plunge in the value of Bitcoin during the course of the week so far.
At the time of writing, Bitcoin is trading up slightly at $7,880.
Featured image: DepositPhotos © nevarpp