Bitcoin prices tumbled further on Monday, reaching their lowest level since October 2017.
Coming off a week that saw the world’s largest digital currency plummet through $6,000, bitcoin has shed another 10% on Monday, falling below $5,000 to an intraday low of $4,749.00.
The broad-based selloff in digital assets has seen the total value of all cryptocurrencies fall to $166 billion, down more than $650 billion from its peak in January 2018.
With bitcoin now down more than 60% year-to-date and more than 70% since its all-time high, Stephen Innes, head of Asia Pacific trading at Oanda believes further regulatory hurdles will push bitcoin below the next psychological level at $5,000, with further declines likely. “The digital token fell as much as 6.3% to $5,202, having plunged through a critical resistance level Wednesday after a period of relative tranquility,” he wrote.
“I remain incredibly bearish on BTC with the $1,000 level looking as likely as $10,000. But this is from a longstanding and unwavering view that regulators and the banking system will continue to push back against the rise of virtual markets, and will undoubtedly burst crypto’s balloon as the $5,000 cliff edge is approaching fast,” he said.
Altcoin massacre continues
Altcoins, the collective group of coins other than bitcoin, tumbled to multimonth lows on Monday. Ether, ETHUSD, -11.86% the second-largest digital currency is trading at a 16-month low of $151.50, down 13%. Litecoin LTCUSD, -10.65% was down 12.9% at $36.33, Bitcoin Cash had shed 17.5% to $271.20 and XRP, XRPUSD, -9.88% was down 2.9% at 48 cents.
Bitcoin futures crumbled on Monday with both front contracts closing down more than 10%. The Cboe Global Markets December contract XBTZ8, -8.49% finished down 11.4% at $4,802.50 and the CME Group November contract BTCX8, -9.41% closed the session down 11.3% at $4,845.