Thursday , January 21 2021

The price of Bitcoin falls below $ 5,000 for the first time in 13 months

The cryptocurrency industry has now lost more than $ 660 billion in value from the January peak. Photo: Bloomberg

The cryptocurrency industry has now lost more than $ 660 billion in value from the January peak. Photo: Bloomberg

New York: The slide in the cryptocurrencies accelerated, with Bitcoin prices piercing the $ 5000 mark for the first time since October 2017, amid speculations that an increased regulatory scrutiny would prompt issuers of initial currency bids to liquidate the holdings. Bitcoin dropped as much as 9.1% to $ 4,958, falling on the eighth consecutive day in what is the longest string of losses on record for the 10-year-old digital token.

The so-called alternative currencies fell even further, with Ether falling as much as 13% and Litecoin in the countrying as much as 14%. XRP, the token associated with Ripple, was the only gain among the major digital currencies.

On Friday, the US SEC announced its first civil penalties against two cryptocurrency companies that did not list their first offers as securities. Airfox and Paragon Currency Inc. will each have to pay $ 250,000 in penalties to compensate investors, and will need to register their digital tokens and securities.

"The goods are enforceable, almost certainly there," said Justin Litzfield, Chief Technology Officer of ProChoice. "Projects are being made to return money to investors, who, having spent a ton of marketing money and their $ 100 million ICO on a fancy side full of road show that was the norm for this harvest of ICOs, will be difficult."

Speculation that the sale was triggered by a US SEC ruling may be overblown. Many of the ICOs have already emptied their wallets and may convert their cryptocorns to Fiat, according to the Elementus researcher.

Volatility returned to cryptocurrencies, with the largest tokens shedding billions in market value since Bitcoin's hard cash fork for the first time last week. This happened when two software development factions disagreed on how to upgrade the offshoot of the original Bitcoin, leading to racing computing weapons.

The cryptocurrency industry has now lost more than $ 660 billion in value from the January peak, according to data.

Bitcoin is down more than 70% from December 2017 high, showing data.

Thomas J. Lee, managing partner at Fundstrat Global Advisors and a long-term deployment of Crispo, cut his target end-of-year target for Bitcoin to $ 15,000 from $ 25,000. The target is based on a fair value multiplier of 2.2 times the cost of the deposit of mining, which the firm connects at $ 7,000, according to a report last week.

Bitcoin bulls may be able to take the heart in some technical steps. According to GTI's global strength indicator, Bitcoin has been fluttering in excess since August, and its highest sales level this year. In addition, it is testing its 23.6% level in the last five years of Fibonacci at $ 4,727 as its next support.

"It's always suspicious to guess the reason for the short-term price movements, but it seems that a lot of what is going on now is the ICOs trying to eliminate all their cryptocurrency and cash to take off with the goods before the SEC gets down on them," said Bram Cohen, co-founder of the proposed digital currency Chia, which is planning an IPO.

Kenneth Sexton, Eric Lamm and Olga Harif contributed to this story.

This story was published from a word-processing agency without any text changes. Only the title has changed.

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