Bitcoin slips by $1,000 in less than 48 hours
LONDON: Bitcoin dropped below $7,000 on Friday to trade more than $1,000 down from an all-time high hit on Wednesday, as some traders dumped it for a clone called Bitcoin Cash, sending its value up around a third.
Bitcoin has been on a tear in recent months, with a vertiginous sevenfold increase in value since the start of the year that has led to many warnings the bitcoin market, now worth well over $100 billion has become a bubble that is about to burst.
But it has quickly retreated from that peak, falling to as low as $6,718 around 1330 GMT on Friday. It later recovered a touch to trade around $6,880 by 1645 GMT, but that was still down almost 4 percent on the day.
“Bitcoin is all ups and downs,” said Thomas Bertani, chief executive of Eidoo, a cryptocurrency wallet provider that recently became the first startup in the space to take out a full-page advert in the Wall Street Journal newspaper.
According to industry website Coinmarketcap, as bitcoin tumbled, Bitcoin Cash, which was generated from another software split on Aug.1, surged, trading up as much as 35 percent on the day to around $850.
Bitcoin Cash’s transactions are processed in so-called “blocks” that are larger in capacity than bitcoin‘s, so can therefore in theory allow for more transactions to be processed at any given time, making transaction fees much cheaper.