Last Wednesday was not a good day for cryptocurrencies in general, and this downwards spike has continued into its second day. Although there was a sudden drop on Wednesday in just a few hours, analysts still have no real idea as to the reasons behind it, as there doesn’t seem to be a catalyst.
Today however, Bitcoin has dropped around $1000 in value in just 24 hours, and similarly Ethereum has declined to its lowest value in over a year, losing 20%.
Today, one Bitcoin is worth about £4,886, which may sound a lot, but at its highest in December last year, the price of Bitcoin was at £12,393, so this is a huge drop in value.
The slump on value has not just affected Bitcoin and Ethereum however, it has already had an impact on other digital coins such as Bitcoin Cash and Litecoin, who have both dropped by over 4%, as well as hundreds of other altcoins.
This is not the first time that the coin’s value has dropped dramatically. Back in January the market crashed by £120 billion after CoinMarketCap dropped South Korean exchange data, and the price of Bitcoin, Ripple and Litecoin all plummeted.
This new drop has lead people to question if this is now really the end of Bitcoin, as some people are dubbing it as a ‘failed experiment’.
One possible reason behind the latest pullback is Goldman Sachs, the investment banking giant, may be stopping former plans to launch a crypto trading deck. Most of the news around Bitcoin has been pretty negative over the last few months, so it may have been a wise move on the part of Sachs to be more cautious.
The future of money still may be turning digital, but that doesn’t mean the current cryptocurrencies out there are the ones that will thrive.