Bitcoin is getting beaten up again.
The benchmark digital cryptocurrency has crashed through $US4000 in a sudden move on Sunday morning, dragging the market for digital coins with most seeing double-digit declines.
The fall was as steep as 14% at one point, with prices reaching $US3700 on some exchanges. A short time ago, Bitcoin was trading at $US3,828, according to Markets Insider data.
Bitcoin is now at its lowest point in over a year and down around 80% from its highs.
It’s the second major fall in Bitcoin and other cryptocurrency prices this week. As is usually the case with moves in crytpocurrency markets, it is hard to pinpoint a catalyst for the move, although it does follow a “fork” a week ago in Bitcoin Cash, an offshoot of the Bitcoin core currency.
Business Insider reported earlier this week that two different groups of developers associated with Bitcoin Cash have been fighting for supremacy, setting up competing products in Bitcoin ABC (Bitcoin Cash with new protocols) and Bitcoin Satoshi’s Vision (BSV).
Reportedly, both sides are now furiously mining blocks on their respective blockchains to establish control. This is a costly exercise, and both groups are suspected of having large amounts of Bitcoin reserves that they can liquidate to finance their operations.
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