Bitcoin Free Fall Continues As Dominant Cryptocurrency Drops Below $7,000

It looks as though it isn't just the Dow Jones that is having a crappy day in the financial world. Bitcoin, which was trading at close to $20,000 in late 2017, has come crashing down to earth in the past few weeks. Just last week, there panic coursed through the market which caused the cryptocurrency to drop below $10,000. Today, Bitcoin dropped under $7,000.

According to Coindesk, Bitcoin is currently at $6,784, which represents a 17 percent drop for the day. Bitcoin hasn't seen these lows since it began a meteoric rise back in mid-November 2017. For those keeping score, Bitcoin has lost roughly half of its value since the start of 2018... ouch.

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When the new year started, Bitcoin had a market cap in excess of $330 billion. Today, that figure stands at just $114 billion. In early December, Valve announced that it was dropping Bitcoin as a payment method due to its volatility, and uncertainty in South Korean exchanges have spooked investors. Banks are also turning their backs on the cryptocurrency, which is further fueling a Bitcoin exodus.

How low will Bitcoin go? According to at least one fund manager, the bleeding will continue for quite a while. "I believe we will see Bitcoin back to $2,500," says Millenia Asset Management founder and fund manager Fernando Pertini. "Maybe even lower."

Long-time cryptocurrency critics like JPMorgan Chase CEO Jamie Dimon are probably saying "I told ya so" right about now. In September 2017, Dimon said that cryptocurrencies are a fraud and that he would fire any of his traders caught involved with Bitcoin. He went on to say that Bitcoin is "just not a real thing" and that "eventually it will be closed."

When Dimon made those comments, 1 Bitcoin was equal to $3,750.