Digital Currency Bitcoin Suddenly Falls Below $4,000

Bitcoin, the world’s largest cryptocurrency, took a tumble on Thursday, falling 9% to under $4,000 again.

According to eToro analyst Mati Greenspan, “it seems to be an exact reversal of the surge that happened on Sunday afternoon.” The cryptocurrency had surged to over $4,000 over the last weekend.
Bitcoin hit $3,570.29, according to data site CoinDesk and with the drop, it is now down over 70% in the last year.

“The one interesting thing about this movement is that it seems to be an exact reversal of the surge that happened on Sunday afternoon,” Greenspan also added. “At this point, the gains made since the start of the year have now been reversed and we’re back to a neutral 2019.”

“A few drivers are rumored to be behind the crypto sell-off in the last 24 hours,” explained David Thomas, co-founder of London-based cryptocurrency broker GlobalBlock. “Firstly, there was a 51% attack on ethereum classic which resulted in the apparent double-spend of $1.1m of ETC. Naturally, occurrences such as these can tend to cause some fear in the market surrounding overall security and confidence surrounding both cryptocurrencies and blockchain technology itself.

“Secondly, there was also talk today of a ‘whale’ moving 319,000 ETH ($68m) onto an exchange today which may well have spooked the market to further sell-offs. Thirdly, ETH has risen off its lows before Christmas by some 80% and any weakness can often lead to a trigger of profit taking from those that managed to catch the lows around $82 in December.

“Lastly, it is worth noting that today’s move yet again highlights how volatile digital assets can be and we can expect them to remain volatile, at least until there’s further institutional involvement in the space,” Thomas said.

Cointelegraph reported that a critical vulnerability that leaked sensitive user data has been discovered but fixed on the Nasdaq-powered cryptocurrency and tokenized stock exchange DX.Exchange.