Bitcoin Drags Down the Fellow Currencies with its Own Price Drop

Bitcoin successfully being steady at a higher value for a few months has faced a price drop in its value. Bitcoin is the largest cryptocurrency, and on Wednesday it experienced a sudden plunge in its value, shedding $400 within 30 minutes.

According to the CoinDesk data, the Bitcoin’s price drop has wiped billions of dollars from its market capitalization within minutes. It has also affected the values of other cryptocurrencies including Ripple (XRP), Ethereum, EOS, Stellar and Litecoin, dragging the value of each of them down, losing billions of dollars.

Bitcoin had attained a stability in its value, as recorded at the beginning of the month, the fall it has experienced has hit its 17-months volatility. The volatility comes when the value of the cryptocurrency gets into a state of stability, to end its stable trading. Also, the cryptocurrency trading by the whales (the people holding a huge share of cryptocurrency), also affects the price change of the cryptocurrency.

Bitcoin was having this stable state since September 17. The value of Bitcoin was above $6600, in the past week and has decreased sharply to $6,125. However, after some time of the price drop, Bitcoin recovered its value to an extent and reached briefly to $6,200.

The International Monetary Fund (IMF) had already published a warning that the rapidly growing value of the cryptocurrency assets can create “new vulnerabilities in the international financial system”. The warning came to be true when Bitcoin’s value dropped to 4.65 per cent, over the 24 hour period. Bitcoin, with its price drop, is hardly maintaining any gains this month. In just thirty minutes the cryptocurrency market capitalization fell from $214 billion to $205 billion.