BITCOIN’S value has fallen below $5,000 (£3,887) for the first time in over a year as turmoil in the crypto-currency market continues.
Coindesk, which monitors the change in cryptocurrency values, reports that Bitcoin now stands at $4,297 (£3,341).
Bitcoin’s value has plummeted since its all-time high last DecemberBitcoin last fell below the $5,000 barrier in October 2017.
The value of the cryptocurrency has dropped over the past year from its all-time high of $17,600 (£13,680) in December 2017.
CoinDesk also reports that the size of Bitcoin’s collective market value dropped below the $100billion (£77.7billion) level for the first time since last November.
It now stands at just under $75billion (£58.2billion).
What is Bitcoin?
Bitcoin got you baffled? Here’s what you need to know:
Bitcoin is a virtual currency
It’s traded between people without the help of a bank
Every transaction is recorded in a public ledger, or ‘blockchain’
Bitcoin is created by mining
Mining involves solving difficult maths problems using computer processors
Bitcoin can be traded anonymously, which makes it a popular way of funding illegal activities
A single Bitcoin is worth just under £5,000 today, but the value fluctuates wildly
Bitcoin is one of many different cryptocurrencies, but by far the most popular
Experts point the finger for the cryptocurrency’s latest crash to increased competition from other cryptocurrencies, according to the BBC.
It reports how last week saw the splitting of rival currency, Bitcoin Cash, into two.
Short sudden changes in Bitcoin prices can often be attributed to trading bots initiating a buy or sell that then triggers others to do the same, creating a domino effect.
The value of Bitcoin has fallen below $5,000 for the first time in over a yearCoinDeskDataGary McFarlane, a cryptocurrency expert at investment platform, Interactive Investor, explained: “The crypto markets are hugely volatile; on the one hand because they are a new and immature market dominated by individual investors, and on the other hand because it is a new technology the worth of which is hard to assess.”
Check out our Bitcoin and cryptocurrencies homepage for all the latest news on cryptocurrencies and what these alternative currencies actually are.
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For more on Bitcoin, read our guide to why has the price of Bitcoin collapsed and how can you buy the cryptocurrency.
Always carry out thorough checks before buying into any cryptocurrencies.
Earlier this year, we reported how DJ Khaled and Floyd Mayweather promoted a multi-million dollar cryptocurrency scam.
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