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Bitcoin Crashes Under $7,000 in Early Trading

November 22, 2019 at 21:37 by Matt Jackson

Having fallen under £7,000 support for several hours in earlier trading, Bitcoin prices have recovered a little, but are still trading at $7,300, a 3.63% drop in the past 24 hours. Bitcoin is now at its lowest price since the beginning of May.

All other major coins have seen significant losses against the dollar, with Bitcoin Cash and Binance Coin posting the biggest losses of the top 10 coins, falling 6.56% and 7.11% respectively. Basic Attention Token is the biggest coin to have posted any 24 hour USD gains.

Bitcoin has been shedding value from its prices for the past few days. Having seen prices above $9,000 at the beginning of November, digital gold has seen sustained price drops, having lost nearly 20% in three weeks. Things looked a lot worse for Bitcoin holders this morning, as prices plummeted down to $6,800. Worse still, the volume has remained low, and there has been very little positive news to improve market sentiment.

Despite the recent losses, crypto intelligence firm, IntoTheBlock, has reported that the majority of Bitcoin holders are actually in profit. They have reported that 54% of Bitcoin addresses are “in the money”. Bitcoin has only traded above $10,000 for a total of nine months, but its volatility means that 10% swings are common, and are regularly picked up by mass media outlets. The reality remains that Bitcoin has proven profitable for a lot of investors.

Many investors had expected prices to improve following the launch of the Lightning Network. Many proponents believed that the Lightning Network would resolve issues with supply limitations. As a result, it was expected that prices would increase. However, uptake has been slow, and analysts have said that this is because the network did not resolve a current problem. Rather, it resolved a problem that hadn’t become a problem yet, so it carried no direct or immediate benefit.

Facebook’s LIbra is another cryptocurrency that has been struggling, even though it hasn’t even launched yet. Investors have jumped ship as the proposed stablecoin comes under increased scrutiny from lawmakers and officials. A group of representatives posted a new bill recently, which would make Libra a security in the eyes of the law. This would mean that there would be even greater regulation for the coin. Having been beset with so many problems already, it is possible that Libra will never see the light of day, despite Facebook founder Mark Zuckerberg being its greatest proponent.

Bitcoin (BTC) prices have fallen 3.63% to $7,359.91. Ethereum (ETH) and Ripple (XRP) have fallen 4.47% and 3.78% to $153.36 and $0.234 respectively. Bitcoin Cash (BCH) has dropped 6.56% to $210.19 and Litecoin (LTC) has fallen 4.59% to $48.56.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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