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Bitcoin plummets in value over Thanksgiving weekend

Analysts point out that the entire cryptocurrency market is currently feeling the strain

Photo (c) mokee81 - Getty Images
Things appear to be looking worse for Bitcoin.

A recent report from Coindesk shows that the cryptocurrency experienced a huge drop in valuation over the weekend, coming in below $3,500. That was down from its value of just over $5,500 from last Monday. The downfall represented the biggest one-week drop since April of 2013.

Reports indicate that the entire cryptocurrency market is feeling strained. In one week’s time, the market’s value dropped by approximately $54 billion, from $182 billion to $128 billion. That marks the lowest valuation since September 2017.

Bitcoin continues to fall

Overall, Bitcoin has seen its value drop by large amounts during 2018. After soaring past a value of $10,000 last November, some speculators thought that it could easily hit $40,000 by the end of 2018. However, it seems that the opposite has come true.

In June, a professor and graduate student from the University of Texas claimed that the digital coin was subjected to price manipulation to inflate its value. They said that the trading patterns of other cryptocurrencies that affected Bitcoin were “not just a by-product of price appreciation.”

Additional reports that Bitcoin and other cryptocurrencies were being used for scams and pump-and-dump schemes have caught the eye of regulators, who continue to propose regulatory frameworks to rein in the digital assets.

While values remain well below Bitcoin’s highest mark of over $19,000, some analysts say that flagging global markets and standard volatility in the cryptocurrency market are to blame for the sudden drop. However, after a very tough year, some investors may find it hard to muster up any optimism.

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