Bitcoin slumped to a new year-low on Friday, as US trading overnight pushed the cryptocurrency closer to the $3,000 mark.
A sell-off that started at around 11pm London time sent bitcoin tumbling nearly 9 per cent to its lowest point since September 2017, to trade at $3,369 by early morning.
The cryptocurrency has had a turbulent four weeks, having lost 41 per cent of its value since mid November. It danced around $4,000 towards the end of the month, sliding below what was considered a psychological benchmark before recovering back above the threshold in a dramatic intraday rise.
But by early December bitcoin was back under $4,000 and on Friday the sell-off resumed with renewed vigour, taking the cryptocurrency closer to $3,000 just a year after it hit an all-time high of almost $20,000.
Reactions from the crypto community were mixed. Writing on Twitter, one user suggested “bitcoin crashing can be best thought of as fiat having a dead cat bounce after getting rekt.”
On Reddit, a debate was being had about the relative merits of panic selling, holding and panic holding. One user wrote: “I am 10000% panic holding,” while another replied, “Can’t make a loss if you don’t sell.”
Another raised a subject that has plagued law enforcement and prompted some to call for regulatory crackdowns on cryptocurrencies.
“As long as there’s people doing hard drugs and ordering sketchy shit from a fabled world known as the ‘darknet,’ and there isn’t some weird robo cash that promises fast transactions, low fees, and ultimate privacy, then bitcoin does have [intrinsic] value!”