Bitcoin Plunges Below $4,500 For The First Time in a Year

Bitcoin Plunges Below $4,500 For The First Time in a Year

The most valuable cyber-coin in the world plummeted below the margin of $4,500, the lowest point since the last year’s end of September. Overall, on November 20 bitcoin lost 20% of its value, getting as low as to $4,320 as per coinmarketcap.com.

The Big Drop Has Come

According to data from CoinDesk, the «big daddy» plunged to as low as $4,237 on Tuesday at 8.45 GMT. This is the largest drop since September 30, 2017. Later it gained back a few hundreds of dollars of value. 

The past week has been full of fluctuations for the first and largest crypto-coin in the world. CNBC highlights that as last month global markets went through the turmoil, bitcoin stayed relatively strong being traded at the rate of $6,400. However, it seemed to be only a short break from volatility this year, when BTC’s price went down by 65% so far. 

Last year December bitcoin hit the record of $20,000 but later shed off hundreds of dollars with the big correction in February and then the continuing downward trend. 

The Lowest Rate is Yet to be Seen? Most Interesting Bitcoin Predictions

This week Bloomberg Intelligence experts predicted bitcoin’s price to plummet to $1,500. In the meantime, such BTC bulls as Fundstrat’s Tom Lee and Galaxy Digital’s Mike Novogratz forecasted the coin will be $15,000 by the end of 2018 and $20,000 in 2019 respectively. 

Bitcoin billionaire Tim Draper some days ago reiterated his previous divination that in four years bitcoin will be worth $250,000. The real-life «Wolf of Wall Street,» in his turn, said bitcoin could surge to $50,000 but after a drop to zero. 

Another person who said bitcoin would see the zilch is Nouriel Roubini, or “Dr Doom,” known for his downbeat prediction in the economic domain, including the 2008 world crisis.

The Probable Causes

The recent bitcoin fluctuation, however, can also be related to its son’s hard fork — Bitcoin Cash split into Bitcoin ABC and Bitcoin SV. 

Also, bitcoin might be reacting to swings in the global market, Tom Lee believes. In a Tuesday interview with CNBC journalists, he named the markets «fragile», therefore it is not surprising that the negative sentiment has overtaken even the crypto-realm. Yet, underscores Lee, bitcoin is not broken yet —in his view, the drop is a short-term result of the panic.

The expert stressed that the US SEC made enforcement against numerous crypto-projects last week for the steep drop.

As of writing, bitcoin is being traded at $4,603 and is 9,68% lower than 24 hours before, as per coinmarketcap.com.