Bitcoin breaches $5,000, plumbs fresh 13-mth low

Bitcoin fell below $5,000 on Monday for the first time in over a year, slumping to a fresh 13-month low on the Bitstamp platform as a broad sell-off in cryptocurrencies sparked last week gathered momentum. The cryptocurrency was down 8.7 per cent intraday at $5,100, after breaching the landmark for the first time since October 12, 2017.

Cryptocurrencies resumed their slump on Monday, with Bitcoin piercing the $5,000 mark for the first time since October 2017, in the wake of increased regulatory scrutiny of initial coin offerings and the split of one of the largest tokens.

Bitcoin declined as much as 9 per cent to $4,958, while so-called alternative coins slumped even more, with Ether tumbling as much as 12 per cent and Litecoin cratering as much as 13 per cent. XRP, the token associated with Ripple, was the lone gainer among major digital currencies. The Bloomberg Galaxy Crypto Index fell as much as 8.3 per cent to a one year-low on a closing basis.

“The selloff is related to enforcement, which is almost certainly underway,” said Justin Litchfield, chief technology officer at Pro-Chain Capital. “Projects are being made to return investor money, which, after having spent a ton of money marketing their $100 million ICO on a lavish party-filled road-show that was the norm for this vintage of ICOs, will be tough.”