Bitcoin recorded its steepest monthly declines in years in November. The price plummet saw the beleaguered bitcoin lose the psychological $4,000 (£3,142) level that was hoped to support the value this last week. Bitcoin is valued at £3,006 ($3,826) on Monday, December 3, at 7:00 pm GMT, according to CoinDesk.com.
Bitcoin dropped as low as £3,000 ($3,818) – close to its yearly low at the end of November, stocking fears that November’s rout will continue in December.
And the wider cryptocurrency market has been hit even harder by the bear market.
The bitcoin fire sale is believed to have caused by a disagreements between developers and miners of bitcoin cash – known as the “cash fork”.
The two sides clashed to direct the largest amount of computing power to their chosen bitcoin cash variant.
And traders and investors then backed away from the crypto market, preferring a price collapse than lose the war.
The market then panicked leading many deciding to sell their cryptocurrency, fearful the highs of last year will never return.
Added to this, the crypto market is concerned the long-awaited significant institutional investment may never materialise.
Financial institutions have been delaying plans to launch bitcoin and cryptocurrency investment products.
The fire sale could also affect the US Securities and Exchange Commission’s imminent decision about an eagerly-anticipated bitcoin exchange-traded fund, by blockchain software company SolidX, investment firm VanEck and the Chicago Board Options Exchange.
The latest rout and return to price fluctuations after months a relative calm has knocked investor confidence, believes said Charlie Hayter, chief executive of data company Cryptocompare.
Mr Hayter said: ”The market has become tired of great expectations and has been beaten pretty bloodily.”
Flagship cryptocurrency bitcoin was far from the biggest loser amongst the other digit assets, with litecoin and EOS recording the steepest falls over the last 24 hours.
In other news, bitcoin SV, the loser of the bitcoin cash fork, could this week fall outside the top 10 cryptocurrencies.
The price has seen steep loses almost daily since it split from the bitcoin cash cryptocurrency last month.
And Ripple’s XRP, has also recorded a price slump, dropping almost 5 percent in the last day.
However, the expected arrival of several institutional products are a cause for optimism.
These including bitcoin futures from the New York Nasdaq exchange from the beginning of next year, the New York Stock Exchange owner ICE and the Starbucks-backed Bakkt cryptocurrency investment platform.
READ MORE: 10-year forecast shows bitcoin ‘WON’T DIE’
Last week, NYSE chairman Jeff Sprecher said: “”The unequivocal answer is digital assets will survive.
“As an exchange operator, it’s not our objective to opine on prices.”
“Somehow bitcoin has lived in a swamp and survived,” Sprecher added.
“There are thousands of other tokens that you could argue are better but yet bitcoin continues to survive, thrive and attract attention.
“Often times in finance, it’s not about being the best — it turns out to be about being the broadest and the most commonly accepted and for whatever reason bitcoin has become that.”
Bitcoin Market Price Chart in RealTime