Bitcoin marked the beginning of December with another drop in value – this time by 8 percent, according to a report by CNBC.
Following a 37 percent drop in November, which took about $70 billion off bitcoin’s market value, the cryptocurrency found a new bottom at $3,790.96.
A year ago, bitcoin was on the rise to its peak at $20,000, and in December of 2017 it was up 40 percent, when a large number of retail investors were buying.
The new low brings the total drop to about 73 percent since January. That’s not all: 24-hour trading volumes are down 56 percent since the start of the year as well, and the whole cryptocurrency market has dropped 80 percent. XRP, the second-largest cryptocurrency, fell 5 percent, and Ether fell 8 percent.
Part of the reason for the fall are crackdowns by the Securities and Exchange Commission (SEC), which settled with two cryptocurrency companies earlier this month, giving them civil penalties.
New coin offerings need to be registered and follow traditional securities rules.
“If it’s a security, we’re regulating it,” SEC Chairman Jay Clayton said earlier this year, according to CNBC.
Bitcoin seemed a much more solid investment in October, when it was trading at $6,400, as global markets fell around it.
Michael Moro, CEO of Genesis Global Trading, said it was fairly easy for the price of bitcoin to break down once it fell below the key support amount of $5,850.
“It’s unclear if this is a ‘bottom’ or a brief period of consolidation before next move down,” he said, “but buyers are still maintaining some cash on the sidelines in case it does go lower.”
Moro also pointed to a diversion in the bitcoin cash network. The currency is split into two versions right now, with Bitcoin ABC and Bitcoin SV.
“While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin,” Moro said.