Bitcoin Drops Below $6,000
It wasn't long ago when bitcoin was enjoying a massive popularity surge, going mainstream as it broke the $10,000 barrier just as 2017 was coming to a close. This year is a different story, however, now with the cryptocurrency dropping to below $6,000 at one point earlier today in trading.
Bitcoin has finally dropped to below $6,000 on the morning of Tuesday, Feb. 6, as massive sell-offs continue to prevail, according to Coindesk. Reported losses at double-digit figures add up to what would be a new low for the cryptocurrency in three months.
At one point, the value of one bitcoin fell to as low as $5,967.34, as recorded on the website's Bitcoin Price Index. It's the lowest the crypto token has been since Nov. 13, as sell-offs continue to bleed the market capitalization of bitcoin to the tune of more than $11 billion in just the first hours of trading.
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The drop has sent waves through the cryptocurrency market as a whole, with the top ten tokens as ranked by Coin Market Cap also dropping in response. The top tokens are now down by 20 percent or more as of this time, with some of them getting the worse hits.
NEO has dropped by 36 percent in just a day, making the token the biggest loser this round. Ethereum and its Ether token are badly hit as well, dropping by 29 percent, while bitcoin cash plunged by 28 percent.
The continuing sell-off has been driven in a big part by recent news of major banks now issuing bans on buying bitcoin and other cryptocurrencies on credit.
JPMorgan has banned cryptocurrency purchases using their credit cards, starting Saturday, Feb. 3. Bank of America has also instituted a similar policy, together with other banks including Citigroup, Capital One and Discover.
The top five credit card service providers in the U.S. have either announced a cryptocurrency ban or have already issued one, driving bitcoin holders to sell off their bitcoins before they fall in value further.
