Bitcoin slumped to a new 13-month low with the biggest cryptocurrency touching $5173.23 on the Bitstamp platform BTC=BTSP.
Bitcoin was last down 5.2 percent at $5270. Many blamed that they fear that there is a “hard fork” in bitcoin cash, where the smaller coin that split into two separate currencies, could destabilize others.
Volatility has returned to cryptocurriencies and even rival coins such as Ether and Litecoin also retreated, and Bloomberg Galaxy Crypto Index fell as much as 6.9 percent to a one year-low on a closing basis. XRP, the token associated with Ripple, was the only lone gainer among major digital currencies.
And according to the industry they have now lost than $660 billion in value from a January peak, according to data from CoinMarketCap.com.
Thomas J. Lee, managing partner at Fundstrat Global Advisors and a long-time crypto bull said
“Crypto-specific events have led to greater uncertainty in the crypto market, including the contentious hard fork for Bitcoin Cash,” Lee said in the note. Bitcoin’s break below $6,000 “has lead to a renewed wave of pessimism,” he said.