Bitcoin price drops 29pc in four days

  • Bitcoin has crashed by more than a fifth after plans to alter the underlying technology were abandoned, leading some to embrace a rival cryptocurrency.
  • The price of one bitcoin dropped from a high of over $7,800 (£6,000) last Wednesday to just over $5,500 on Sunday morning, a drop of 29pc in four days.
  • By Monday morning it had recovered slightly to trade at $6,400, 21pc down from last week’s peak.
  • The fall comes after proposals to upgrade the bitcoin network in an attempt to increase the speed of transactions were shelved last week amid floundering support.
  • The so-called “SegWit2x” proposals, supported by leading online exchanges, were designed to make bitcoin more efficient.

Bitcoin has crashed by more than a fifth after plans to alter the underlying technology were abandoned, leading some to embrace a rival cryptocurrency.

Bitcoin has crashed by more than a fifth after plans to alter the underlying technology were abandoned, leading some to embrace a rival cryptocurrency.

The price of one bitcoin dropped from a high of over $7,800 (£6,000) last Wednesday to just over $5,500 on Sunday morning, a drop of 29pc in four days. By Monday morning it had recovered slightly to trade at $6,400, 21pc down from last week’s peak.

The violent swings are likely to embolden critics of the virtual currency, who view it as inherently unstable and say it is in the late stages of a financial bubble.

The fall comes after proposals to upgrade the bitcoin network in an attempt to increase the speed of transactions were shelved last week amid floundering support.

Bitcoin is notoriously volatile and its price is largely dependent on the faith of its owners, so maintaining peace among its divided online community is seen as imperative. However the decision not to go ahead has created its own rift, with many now flocking to “Bitcoin Cash”, an alternative cryptocurrency split off from bitcoin itself earlier this year.

Bitcoin Cash was created in August when bitcoin went through a “hard fork”, creating two competing currencies – bitcoin and Bitcoin Cash. The latter’s key difference is that its network allows for larger “blocks”, which makes it faster and more efficient – a similar change that the now-postponed SegWit2X proposals would have created. 

Its price almost trebled from $700 to over $1,900 on…

Bitcoin price drops 29pc in four days