The value of bitcoin, the most popular cryptocurrency has crashed to a one year low, hovering around $4,000 as the volume of the crypto currency in Nigeria dipped to N1.08 billion, in a 24 hour panic driven market.
A panicked market saw not only the value of bitcoin but other cryptocurrencies shed millions across board. Data from Coin telegraph’s price tracker, Coin360, CoinMarketCap, and Bitcointicker captured frenetic activity into Tuesday as BTC/USD dropped up to 17 percent, at one point reaching $4,237.
Analysts believe if the value of the cryptocurrency which once sold at almost $20,000 in December 2017, breaks the $4,000 border may crash to $3,000. As regulators in the Nigerian market warned against the cryptocurrency market and the value dropped, the volume of bitcoin traded in the country has waned.
From a high of N2.07 billion in December 2017, the volume of bitcoin traded in the country has declined, albeit at a slow pace, moving alongside the price depreciation of the cryptocurrency. The volume however dipped to N1.08 billion last week, the lowest since September 2017
Bitcoin’s daily losses currently total 15.5 percent after a correction to around $4,500, while the situation remains highly volatile as the pair tests new resistance levels. The events mark a continuation of the unsettled conditions sparked Nov. 15 when altcoin Bitcoin Cash (BCH) experienced a contentious hard fork, which has since resulted in the emergence of two separate competing chains.
While BCH initially held onto much of its value, the 24 hours to press time saw a U-turn for investors, BCH/USD shedding almost 40 percent to test support at $200. While BCH firmly took the lead as the worst performer of the top twenty crypto assets, others also suffered heavy losses.
Ethereum (ETH) significantly widened its gap in market cap with Ripple (XRP), cementing its position as now the third-largest cryptocurrency. ETH/USD daily losses were circling 15 percent at press time, compared with XRP/USD’s 6.2 percent.
Elsewhere, multiple assets lost in excess of 17 percent on the day, while Tezos (XTZ) and Binance Coin (BNB) shed almost 20 percent. Even stablecoin Tether (USDT) is currently down about 2 percent over a 24 hour period.
While commentators took a broadly pragmatic approach to the downturn, talk on social media has nonetheless returned to the topic of when BTC in particular will “botto”’ in USD terms.
Various sources continue to claim that major support lies around $4,000, while if this is broken, $3,000 should mark a definitive barrier. “People have panicked,” crypto enthusiast John McAfee wrote on Twitter, summarizing his thoughts.
At press time, total market capitalization was around $146 billion, down from its weekly high of around $212 billion, total market cap was last at $146 billion on October 6, 2017.