The price of BTC dropped below £5,490 ($7,000) in the early hours of this morning, days after the world’s largest digital currency smashed through the £6,250 ($8,000)-barrier. During Asian trading hours, bitcoin fell to as low as £4,846 ($6,178) at Bitstamp exchange, down 21.6 percent from the previous close. After many lacklustre months, the price of bitcoin started to rally from early April, hitting prices not seen since July 2018 on Tuesday this week. At its peak in December 2017, BTC soared to almost £15,624 ($20,000) and crypto watchers have been keeping an eye for bullish movement ever since.
Bitcoin had picked itself up slightly at 12.23pm BST and was worth $7,222.66 at the time of writing.
Crypto traders are unsure as to what caused the drop this morning, with some suggesting there appears to be no obvious reason behind the plunge.
Others suggest it was driven by profit-taking from the recent high.
Ryan Rabaglia, head of trading at digital asset brokerage OSL, said: “The sudden fall does not appear to have been driven by any particular news item.
“Rather it looks to be driven by large sell orders by a handful of people or even just one person, who are likely realizing profits after the recent price rise or looking to acquire more at lower prices.
Jehan Chu, co-founder of Kenetic Capital, said: “This last drop was likely caused by a combination of profit-taking and also algorithmic trading compounding the swift fall.
“We can expect these types of steep rises and drops to continue for some time until institutional investors grow market volume.
“The key takeaway from the past few weeks is that with each of these surges, the overall interest and investment continues to expand around a growing core of real blockchain use and adoption.”
Ethereum (ETH), bitcoin cash (BCH) and litecoin (LTC) all suffered similar losses and dropped between eight and 16 percent in value.
Ethereum is currently trading hands at £179.43 ($228.83), while bitcoin cash is worth £290.05 ($369.92).
Litecoin is at £67.86 ($86.55).
Bitcoin Market Price Chart in RealTime