The value of bitcoin fell seven per cent today as it continues to slide after hitting a 13-month low yesterday.
Monday's 14 per cent plunge saw the world’s largest cryptocurrency drop below $5,000 for the first time in more than a year to its lowest level since October 2017.
The currency, which sank to $4,382 this morning, has lost more than 70 per cent in value since the height of the cryptocurrency bubble in December 2017 amid regulatory pressures.
Thinkmarkets analyst Naeem Aslam said: “The crypto king is being hit hard and it is under tremendous selling pressure.
“Bitcoin broke the $5,000-mark yesterday for the first time, breaking another psychological level.
“The break of $6,000 was bad as it is and now a violation of the $5,000-mark is further evidence that bulls are not supporting the price.
“The next biggest support level is at $4,000. One can only pray that the price doesn’t violate this critical level because a break of this would open the floor towards the $3,000 level.”
“Volatility has returned to the crypto space after months of increasingly tighter ranges and relatively sparse news flow,” Oanda senior market analyst Craig Erlam added.
“Unfortunately, contrary to last year, the news that’s flowing is mostly bad and while the size of the moves are rather familiar, the price action is in the opposite direction.
“As we quite often see in this space, negative news is rarely confined to a particular instrument and once the bitcoin domino falls, the rest quickly follow.”