Bitcoin Skids to a 13-month Low, Goes Below $5000
Bitcoin fell below $5000 shortly before Noon Eastern Standard Time Monday, the lowest the cryptocurrency has fallen in over 11 months.
It is down more than 18 percent in the past week alone. This follows months of relative calm where Bitcoin sat between $6000 and $7000.
Bitcoin is now down more than 30 percent since last Thanksgiving week.
According to CNBC.com, analysts attributed bitcoin's continued sell-off to technical levels and stop orders in the market kicking in after bitcoin fell below $6,000.
"The next logical level of support is at $5,000 but if that doesn't hold, the next logical support level isn't until $3,500," eToro analyst Mati Greenspan said in a note to clients Monday. "With all the falling prices lately, this definitely fits the definition of a buyers market."
A split in the cryptocurrency Bitcoin Cash has also been cited as causing the price instability.
Additionally, the Securities and Exchange Commission announced its first civil penalties against crypto founders Friday as part of a bigger regulatory and legal crackdown aimed at cutting down on fraud in the sector.
SEC Chairman Jay Clayton said earlier this year that all cryptocurrencies aside from bitcoin and ether constitute securities and "if it's a security, we're regulating it."
Bitcoin is widely used within the online gambling sector.
Other cryptocurrencies, including Ethereum and XRP dropped 10 percent and 5 percent, respectively.
- Aaron Goldstein, Gambling911.com
