major cryptocurrencies crash again and bitcoin falls below $6,000
Cryptocurrency crash extends to another day.
- Bitcoin falls below $US6,000.
- Bitcoin, ethereum, litecoin, ripple, and bitcoin cash are all suffering double-digit percentage losses.
LONDON – Cryptocurrencies are diving again on Tuesday, extending a slump that began in earnest at the start of January.
Bitcoin briefly fell below $US6,000 at around 8.00 a.m. GMT (3.00 a.m. ET) for the first time since mid-November.
Hussein Sayed, chief market strategist at FXTM, said on Tuesday morning: “The most famous digital currency has fallen 69% from December’s record high, and almost 56% from the start of the year.”
Ethereum, litecoin, bitcoin cash, and ripple are all posting double-digit percentage losses on Tuesday morning.
Here’s the scoreboard:
- Bitcoin is down 11.1% to $US6,131.33.
- Ethereum is down 15.8% to $US582.03.
- Litecoin is down 13% to $US108.40.
- Bitcoin Cash is down 10.6% to $US785.79.
- Ripple is down 11.7% to $US0.60.
Tuesday’s slump follows carnage in the crypto market on Friday and a market slump in early January. From a peak of $US830 billion at the start of January, the global cryptocurrency market has now shrunk to $US285 billion, according to data provider CoinMarketCap.com.
The latest dive comes in tandem with a global stock market rout but that appears to be uncorrelated with the crypto crash.
Commentators have been blaming fears of regulation, cooling interest from Asia, and fears over the role cryptocurrency Tether plays in the bitcoin market. Banks are also clamping down on customers buying cryptocurrencies on their credit cards.
Miles Eakers, chief market analyst at foreign exchange business Centtrip, said in an email on Monday night: “Governments across the globe continue to clamp down on retail investors speculating on crypto, with the People’s Bank of China stating it would step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs, ‘to prevent financial risks’.”