Bitcoin Free Fall Continues As Dominant Cryptocurrency Drops Below $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.
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.