Bitcoin Continues to Tumble; Erases $38 Billion in Market Capital

An illustration photo shows a Bitcoin (virtual currency) paper wallet with QR codes and a coinA Bitcoin (virtual currency) paper wallet with QR codes and a coin are seen in an illustration picture shot May 27, 2015. REUTERS/Benoit Tessier/Illustration/File Photo
  • Bitcoin Continues to Tumble; Erases $38 Billion in Market Capital

The unregulated global digital currency Bitcoin continues to tumble following the suspension of Segwit2x software upgrade on Wednesday.

The suspension which was announced by Mike Belshe, CEO and co-founder of Bitcoin wallet software provider BitGo, plunged the dominant cryptocurrency from $7,882 a coin after he said in an email that the upgrade proposal is presently too controversial to implement.

Bitcoin chart

“Unfortunately, it is clear that we have not built sufficient consensus for a clean block size upgrade at this time. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x,” he said.

“Until then, we are suspending our plans for the upcoming 2MB upgrade,” he concluded.

Since Wednesday, the cryptocurrency has lost about $38 billion of its market size as investors reportedly jumped on alternative coin, Bitcoin Cash, created during the previous upgrade. Bitcoin cash market capitalization surged to $41 billion on Sunday before pulling back to $21 billion.

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Bitcoin cash was trading at $594 a coin on Wednesday before rising over 400 percent to $2,446 on Sunday, currently trading at $1,235.

Cryptocurrencies remained volatile across board as investors look to decipher Bitcoin next move.

However, some experts believe this is a temporary pullback and expected the high flying currency to blast through $8,000 a coin.

“The market has shown evidence of an impulsive rally since breaking above 6,044. Next in focus $7,941. Might consolidate there before continuing higher,” said Goldman Sachs technical analysts Sheba Jafari.

Since dropping to $5,617 on Sunday it has gained about 14 percent to $6,491 a coin.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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