Bitcoin’s prolonged decline in 2018 continued apace over the weekend with the pioneering digital currency losing nearly a third of its value in the past seven days.
The troubled cryptocurrency fell below $4,000 over the weekend, rounding off one of its worst weeks on record. Bitcoin has seen almost 80% wiped off its value since its peak at almost $20,000 in mid-December.
Bitcoin is not alone in its troubles. Fellow cryptocurrencies Ripple and Ethereum have also fallen sharply, especially in the past month. According to research by CoinMarketCaphe, market value of all registered cryptocurrencies currently totals $130bn, down from the sector’s record peak at ovr $800bn just at the start of this year, reported the Wall Street Journal.
Many investors are, however, holding their nerve and waiting for the digital currency market’s rout to bottom out before picking up again. Some are drawing parallels with the dotcom bubble around the millennium, when companies such as Amazon lost more than 95% of their value before recovering on an unprecedented scale.
Others cautioned of a looming all-out crash. Stephen Innes, the head of trading for Asia Pacific at Oanda told Fortune: “There’s still a lot of people in this game. If we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits.”
At midnight EST on Sunday, Bitcoin fell to $3,635 before recovering some of its losses.