Bitcoin's near-$800 decline on Wednesday might not have raised an eyelid six months ago, but in what has become a lifeless market of late, the fall is alarming.
When last seen a little after 10:30pm GMT on Wednesday, bitcoin was trading on the Hong Kong-based Bitfinex exchange marginally back above June’s low of $5,755, at $5,811, after trading two hours earlier at a one-year low of $5,678. A $792 decline between the hours of 9am and 9pm GMT—a fall of 12.2 percent—amounts to nearly five times the median daily trading range for the past six weeks.
Sorrow was far-reaching, with all other major coins, including ripple, ethereum, bitcoin cash, Litecoin and EOS, losing at least 10 percent on their valuations from a day earlier.
It is not entirely clear what triggered Wednesday’s broad sell-off but it may be a case of crypto-investor nerves ahead of Thursday’s hard fork in bitcoin cash.
Stakeholders in crypto exchanges continue to offer optimistic forecasts for digital currencies but their conflicts of interest are all too apparent.
A month ago, UK-based Juniper Research—an independent digital technology consultancy—predicted an “implosion” in the crypto industry based on the inability of bitcoin to make summer gains in what should have been extremely favourable conditions.