For the first time in 2018, Bitcoin has seen its price drop below the $5,000 psychological price level. This drop has left those searching for a rally silenced. On the US-based cryptocurrency exchange Coinbase, the BTC/USD pairing touched $4,950 before returning above $5,000. This moved Bitcoins yearly low once again, and even seeing it experience a drop in market cap to $89 billion.
It is not certain as to the catalyst for the spike down, however many claim it is due to Bitcoin Cash’s (BCH) hard fork. The 2 opposing sides of the fork, supporters of Bitcoin Cash ABC and supporters of Bitcoin Cash Satoshi Vision (SV), coupled with a general fatigue in the market could also be the cause for the drop.
Last year, Bitcoin’s drop to $5,000 lead to a major sell-off, however, speculators can only hope for an opposite reaction this year. This movement may just wear itself out, or we may see one of the crypto VIP’s who have been vocal about grand gains for the flagship digital asset come true.
However, as it stands, Bitcoin has dropped 22 percent in the past week. The digital asset also sees itself down 30 percent from where it was 12 months ago, before its meteoric rise in December.