The Bitcoin sell-off continues: The price of the cyber motto fell by as much as 12 percent on Tuesday to a 14-month low of $ 4,199.36. Thus, the loss of the past few days adds up to around 33 percent.
This is the biggest price slide since three quarters of a year. The digital currencies Ethereum or Ripple also posted double-digit percentage losses on Tuesday. „The crypto-currency market is plagued by panic sales,“ said analyst Salah-Eddine Bouhmidi from brokerage DailyFX. An end to this decline is not in sight for now.
Market analyst Fawad Razaqzada from online broker Forex.com also expressed pessimism. „The euphoria has passed, and a lot of people have lost interest.“ In the past year, the Bitcoin price had temporarily gained 2,000 percent and hit a record high just before Christmas at around $ 20,000.
Splitting Bitcoin Cash
Investors are nervous about the planned splitting of the sister currency Bitcoin Cash. They fear that this will destabilize the entire cyber-currency market.
In the case of a so-called hard fork, the blockchain database will be continued on a separate date in two independent lines. This step is usually accompanied by a software update, for example, to increase the transaction speed. The holders of this original currency will then be credited with the same additional amount of the new sister currency.
Bitcoin produced Bitcoin Cash and Bitcoin Gold. These hard forks were always accompanied by price turbulence.