Bitcoin is down to its lowest levels since September 2017 and is down almost 15 percent on its November 18 opening price. The virtual asset was exchanging hands for £3,728.30 ($4,781.40) at 4.14pm GMT (UTC) – a 7.13 percent fall on the last 34 hours, according to CoinMarketCap. Earlier last week bitcoin prices appeared stable near the £4,990.40 ($6,400) mark but took a dive below its £4,678.50 ($6,000) support level on November 14 and have fallen further since.
Bitcoin dipped by around 30 percent on last week’s trading prices and is down by about 25 percent at 4.14pm GMT.
According to crypto price tracker CoinDesk, the digital token fell as low as £3,275.12 ($4,200.22) today, as of 4.24pm GMT.
Market analysts observing the crypto space noticed a wider sell-off of cryptocurrencies around the time of bitcoin cash splitting into derivative coins bitcoin ABC and bitcoin SV on November 15.
The bearish performance has now extended into the following week after token sell-offs struck again on Monday, November 19.
Bitcoin is now fighting to find a bottom and the price plunge comes after three months of relative stability, hovering above the £4,678.50 ($6,000) support level since September.
Will bitcoin continue to fall?
Despite bearish performance across the board, bitcoin’s volatility does not come as a surprise to most analysts.
Mati Greenspan, a crypto analyst at eToro, argued the recent price movements do not signal “an end for crypto assets”.
He said: “The bear in crypto markets is showing persistence.
“What we’re seeing now are the after-effects of the unprecedented rise of Bitcoin and other crypto assets seen in 2017. This year is simply a retracement of that.
READ MORE: What is Bitcoin? Everything you need to know about the digital cryptocurrency
“The same is happening in broader markets as well where tech stocks, for example, are following a similar pattern.
“As with all markets, if prices reach levels that are higher than can be justified they need to pull back.”
“These cycles can sometimes be accentuated in the crypto market due to the riskier nature of this nascent industry.”
In Mr Greenspan’s opinion, volatility is still very much to be expected at this stage but should not be a major concern.
Tom Lee, the co-founder of Fundstrat Global Advisors, similarly argued short-term panics and sell-offs have become the norm for bitcoin.
He told CNBC the case use for bitcoin is still present but markets across the globe are “fragile”.
Others have, however, expressed more concern for the future of the digital asset.
Kevin Murko, CEO of crypto exchange CoinMetro, said bitcoin’s prices were bound to drop as a result of media hype and volatility.
READ MORE: How to mine bitcoin: A guide to bitcoin mining at home – Could YOU become a bitcoin miner?
He said: “All cryptos are nascent assets; speculation, rather than the usefulness of the technology or the underlying asset, is what’s most been driving movement since its inception.
“Fuelled by media hype and the conviction amounts the public that crust was a way to get rich quick, the asset class rocketed from almost nothing to over $800billion at its peak.
“That price point, quite obviously, was unsustainable.”
Mr Murko said the sell-off was long overdue and bitcoin will need to show real-world underlying value before investors return to bolster its position.