There was a high time for bitcoin traders when the cryptocurrency hit $20,000 in December last year. People were divided into two groups. The first group was the bitcoin bulls who said that the cryptocurrency’s rise has only begun and predicted that it would touch $100,000 by the end of the year. Another group was the bitcoin sceptics who believed that bitcoin was one of the biggest bubbles in history and its price will crash down.
Less than a year has passed and bitcoin’s price has moved down decisively proving the later set of people correct. Bitcoin has lost 80% of its value since the peak. As of today, Bitcoin is trading at $3,463 at the time of writing this article.
The fall in the prices has not been a sudden incident. The fall was persistent from January this year. In January the cryptocurrency was trading at $15,000 and by March it fell to $8,000. From June to November, it traded at $6,000 and finally has lost its value within one month in November.
Experts blame a fork in Bitcoin Cash which occurred last week for the loss in values of cryptocurrencies. The two groups of developers associated with Bitcoin cash were furiously mining blocks on their respective blockchains to establish control, which has required them to liquidate their bitcoin reserves to finance their operations. And this sudden supply in the market has led to a steep fall in prices.