Bitcoin Falls Below $7,000, Down More Than 60% From All-Time High

Bitcoin prices dropped below $7,000 today. Shutterstock

Bitcoin's free fall continued today, causing the digital currency's price to drop below $7,000 for the first time since November.

The price of Bitcoin declined to as little as $6,583.56, according to the CoinDesk Bitcoin Price Index (BPI).

At this point, the cryptocurrency had lost more than 66% of its value since reaching an all-time high in December.

[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bearish Market Momentum

Bitcoin has been pushing lower as digital currencies suffer widespread losses, shedding more than half their total value in less than a month.

After reaching a market value of more than $830 billion early last month, cryptocurrencies' total value has plunged to nearly $300 billion, CoinMarketCap figures show.

"It's a rout," said Charles Hayter, co-founder and CEO of data provider CryptoCompare, adding that this sharp downturn has triggered panic selling.

Jeff Koyen, CEO of 360 Blockchain USA, provided similar input, stating recently that the "The entire crypto market is being battered."

Natural Market Cycles?

However, some market analysts have taken a more neutral stance, asserting that the digital currency markets are simply going through the natural ups and downs.

"The current overall market has been in a downtrend for sure," said blockchain developer Bruno Skvorc.

"However, this downtrend is a natural cycle of any market, especially one that say parabolic growth like we saw in Sept-Dec," he added.

Gavin Yeung, founder and CEO of digital asset management firm Cryptomover, emphasized that markets always rise and fall.

What's Next For Crypto?

Cryptocurrencies - and the sharp gains they have generated over the last few years - have repeatedly prompted speculation that these digital assets have entered a bubble.

This point of view has a reasonable basis, as the total value of digital currencies climbed more than 3,000% in 2017 alone, CoinMarketCap data reveals.

An Uncertain Market

Analysts should keep in mind that while there is significant market history for more traditional assets like stocks and bonds, cryptocurrencies have not been in the mainstream for long.

As a result, it is far more difficult to predict what will happen next.

Digital currencies could finish their rout in the coming days and weeks, finding a bottom and then renewing their ascent.

Alternatively, they could keep dropping, worsening losses and ushering in more fear, uncertainty and doubt.

Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.