Bitcoin price fell below $4,500 for the first time since October last year on sell-off in the digital currency. The famous virtual currency plunged over 7.5 percent on Tuesday to below $4,500, losing 30 percent in a week. The digital currency is now trading at $4,354.20 on the Bitstamp exchange. Other major cryptocurrencies such as Ethereum dropped 15.2 percent and Bitcoin fell 13.1 percent. Ripple XRP had plunged 4.5 percent in the past 24 hours.
On Monday, Bitcoin plunged as low as $4,754 Monday, marking a 14 percent drop in a 24-hour period.
From a January peak, the cryptocurrency industry has now lost over $660 billion in value according to data from CoinMarketCap.com. Bitcoin is down over 70 percent from its December 2017 high, the data show.
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Thomas J. Lee, managing partner at Fundstrat Global Advisors and a long-time crypto bull, slashed his year-end price target for Bitcoin to $15,000 from $25,000. The target is based on a fair value multiple of 2.2 times the breakeven cost of mining, which the firm pegs at $7,000, according to a report last week.
“Crypto-specific events have led to greater uncertainty in the crypto market, including the contentious hard fork for Bitcoin Cash,” Lee said in the note. Bitcoin’s break below $6,000 “has lead to a renewed wave of pessimism,” Bloomberg reported citing him.
The value of all digital currencies, on Monday afternoon, fell to $161 billion, a drop of 26 percent in a time of little less than two weeks.