After a notable run of price stability over the last several months, Bitcoin volatility returned with a vengeance on Wednesday as the price of the world’s most well known cryptocurrency crashed below $6,000 – losing more than 9 percent of its value. At press time, the price stood at $5,541. 23 on Coinbase, down more than $750 in the last 24 hours.
Some analysts attributed the sudden price drop to concerns about the looming Bitcoin Cash hard fork expected tomorrow. Others have noted that automatic stop loss orders tied to the $6,000 price level may have contributed to the decline.
Other notable digital currencies experienced comparable losses throughout the day, with XRP and Ether both suffering double-digit percentage losses. Meanwhile, total cryptocurrency market capitalization has fallen below $200 billion to reach a 2018 low.
CNBC quoted eToro Senior Market Analyst Mati Greenspan, who suggested that falling U.S. tech stock prices may have also played a role in the crypto crash, having a “spillover effect into crypto markets.”