Cryptocurrencies Join the Sell-off, Bitcoin Dips Below $75,000

After holding relatively stable during the recent global market turmoil, cryptocurrencies have joined the sell-off.

Cryptocurrencies joined the global sell-off on Monday, with Bitcoin falling below 75,000 dollars (£58,700) before seeing a slight rebound.

Bitcoin’s prices have not been this low since just after President Donald Trump’s election day victory last year when a bull run in crypto prices occurred.

Mr Trump, who has been a major promoter of the crypto industry, took credit when bitcoin’s price broke 100,000 dollars (£78,270) in December.

Bitcoin has been on a relatively steady slide in price since Mr Trump took office earlier this year.

Bitcoin’s backers say it is a type of digital gold that can act as a hedge against volatility. But Garrick Hileman, an independent cryptocurrency analyst, said bitcoin’s price slide shows that thesis still has not proven to be true.

“It’s just not there today,” Mr Hileman said. “(Bitcoin) trades like a risky tech stock.”

Other major digital assets saw even bigger one-day percentage drops on Monday morning.

Ether, the second most popular crypto token, was trading at about 1,500 dollars (£1,174) on Monday morning. It has lost about half of its value since Eric Trump, the president’s son, encouraged his followers on social media to buy ether in early February.

President Trump’s own meme coin, which he launched just before taking office and once hit a high of more than 70 dollars (£54.79), dipped below eight dollars (6.26) on Monday morning.

Stock prices of crypto-focused companies also saw declines in early trading on Monday.