Tuesday , May 17 2022

Bitcoin Plunges Looks at the New Year Under $ 6,000



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Bitcoin fell more than 10% on Wednesday, falling below $ 6,000 and reached new levels for the year. Other opponents also lost sharply. Market participants suggested that a divergence in a separate digital currency, called Bitcoin Cash, triggered a large drop.

A concern is that the division known as a fork weakens Bitcoin Cash and its successor. Bitcoin Cash, which started in August 2017, itself is a bitcoin branch; It has fallen by about 90% since the peak of last year.

Andy Bromberg, co-founder and chairman of CoinList, a platform for listing of digital markers, said that major traders who sell bitcoin play an important role in the market to meet the risk of a decline in the value of Bitcoin Cash holdings.

Önemli A single event, such as forks, can be an important factor in the wider crypto markets because they are relatively immature, Brom said Bromberg. ”Large participants will often trade between multiple currencies and go beyond the asset that triggers the effects of the fluctuation.“

In an original WSJ document, market journalist Steven Russolillo enters Japan and Hong Kong to explore the universe of crypto currencies. His mission: create WSJCoin, a virtual coin for the newspaper industry. Picture: Kristal Tai. Video: Clément Bürge

After the 2017 manic rally and the steep dips this year, the crypto-money markets have calmed down in recent months, as fluctuations in more traditional assets have increased. Last week, a measure of bitcoin's volatility dropped to its lowest level since December 2016.

But then the calm suddenly came to an end. According to CoinDesk, the lowest level since last October, Bitcoin has recently declined to around $ 5,390.12. Over the past few months, it was trading at about $ 6,500.

Bitcoin has lost more than 60% of this year's value and is trading well below its $ 20,000 record at the end of last year.

A version of Bitcoin Cash is supported by Craig Wright, a controversial Australian businessman who claims to be the creator of the bitcoin Satoshi Nakamoto, but cannot convince most people in the industry. The other is Bitmain Technologies Ltd., a Chinese mining giant that opened its doors to the public in late September. and Roger Ver, who invests in the community known as tarafından Bitcoin Jesus ve.

Bitcoin lost more than 60% of its value this year.

Bitcoin lost more than 60% of its value this year.

Photo:

dado ruvic / Reuters

Jihan Wu, co-founder of the business, has become a major supporter of Bitcoin Cash technology, and believes that it will fix issues, including processing speeds, which prevent the possibility of bitcoin becoming a primary means of payment. Analysts, however, said the Bitmain has been able to prove that it is a responsibility for large amounts of Bitcoin Cash, especially because it is very low in value.

. The extremely cautious division of Bitcoin Cash and the support of major mining players, as well as the uncertainty of all the net stakeholders, has caused a major break in the market, ın said Angel Versetti, co-founder and CEO of Ambrosus. company.

Write Steven Russolillo at [email protected]

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