Bitcoin dropped to its lowest lows over the weekend; its maximum fall after September 2017, touching $3,447.58 before recovering to about $3,945 around 6 p.m. ET on Sunday. The cryptocurrency has shed about 35% of its value in the course of the week, the largest single week fall after April 2013 when it had dropped by 44% and plus as reported by CoinDesk.
The falling trend started in November when it dropped beneath the $6,000 range, a significant U-turn after a relatively consistent October. The cryptocurrency has witnessed a change of fortunes after Thanksgiving and definitely after the earlier holiday season when it was in the peak of its value at the $20,000 range.
The weekend lows marked the fall of the cryptocurrency by about 75% plus whereas other cryptocurrencies such as Ether and XRP showed a fall of 9% and 12% respectively as per reports by CoinMarketcap.com.
Dropping of Bitcoin below the $4,000 levels have led to the exit of several traders and triggering ‘stop losses’ of others. ‘Stop losses’ are predefined levels of trading that time and again have aggravated selling. The falling of the cryptocurrency to such new lows consequently broke the support levels.
Crackdowns by regulatory authorities have to some extent affected the prices. In an attempt to restrict incidences of abuse and fraud in the industry, civil penalties were announced by Securities and Exchange Commission for the first time against the founders of the cryptocurrency.
Investigations into the rigging of bitcoin rally which touched to $20,000 in the previous year are being conducted by regulatory authorities as reported by Bloomberg News last week. The U.S. Department of Justice is looking into the alleged use of a debated cryptocurrency named Tether to push up the price of bitcoin. Tether is said to hold a 1:1 backing of the U.S. dollar according to the founders.