Bitcoin prices tanked almost 7% in the past 24 hours as its trading volume tumbled to a two-year low. At 19:39 UTC today, the price of one bitcoin token was about $10,656 after topping $11,432 just hours earlier.
Of the top 10 most valuable cryptocurrencies in the world, all registered dramatic price drops during the past 24 hours, with bitcoin, Litecoin, Ethereum, Bitcoin cash, Tron, Neo, Eos, and newcomer Huobi Token plunging more than 5%.
While bitcoin's (BTC) price has surged during the past few months, its trading volume has lagged, sinking to a two-year low. As of March 4, there were 195,500 confirmed bitcoin transactions taking place around the world that day.
That figure was only slightly better than the all-time record low of 180,000 confirmed BTC transactions, which occurred on Feb. 26, 2018. Those volumes were the lowest since March 2016, when bitcoin prices hovered between $380 and $410 per token.
Industry insiders say the drop in trading volume is odd, considering transaction fees are the lowest they have been months.
"The slump comes at a time when Bitcoin struggles to regain the sky-high USD value it achieved late last year, when it reached $20,000 on some major exchanges," Coin Telegraph noted.
While the price of bitcoin, Ethereum, and Ripple fluctuate on an hourly basis, it seems there's no stopping the crypto train as the media hype escalates and blockchain – the technology behind bitcoin – continues to win over skeptics, who are optimistic about its fintech applications.
Cryptocurrency bulls are confident that digital currencies will win widespread adoption in the coming years. In February 2018, the Winklevoss twins, Cameron and Tyler, predicted bitcoin's price could top $320,000 a token in a few short years. Cameron said bitcoin skeptics suffer from a "failure of imagination" when they dismiss what he believes will be the wave of the future.
In contrast, economist and Harvard professor Kenneth Rogoff told CNBC yesterday that BTC prices are more likely to crumble to $100 a token in a few years once people wake up from their crypto daze.
"If you take away the possibility of money-laundering and tax evasion, [bitcoin's] actual uses as a transaction vehicle are very small," said Rogoff, the former chief economist of the International Monetary Fund.
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