Cryptocurrency traders watched bitcoin prices slump back to $5,000 today amid a continued threat of a crypto-crash.
Bitcoin dropped another 3.50 percent today to trade at $5,889.60.
The rest of the market has suffered heavily, with Ethereum trading for $4,111.50, Ripple going for $0.43 and Litecoin going for $73.73.
The market has seen significant losses over the last two weeks after a series of major hacks, with many analysts predicting the prices to drop even further.
Will bitcoin continue to fall?
Fears this could be the end for bitcoin and the cryptocurrency market itself are swirling with the most recent drop in price.
Many investors thought bitcoin rose too quickly to be sustainable, with the market always leaning towards volatility.
Jordan Hiscott, chief trader at Ayondo markets told Express.co.uk he had predicted that by the end of the summer we would have at least challenged the $5,000 level.
But in reality, he warned this could be reached within a couple of weeks.
Mr Hiscott said: “Various catalysts can be attributed for this, but for me the hacking of exchanges has a huge detrimental effect on the confidence of the crypto asset.
“At the moment, given the prevalence of these attacks, I am wondering why the main exchanges don’t have cold storage wallets. Importantly, these storage applications for crypto assets operate on an offline basis, so the chances of hacking should be massively reduced.”
The market suffered another serious blow yesterday morning after the Bank of England issued a stark warning to banks and insurance firms about cryptocurrencies.
Sam Woods, the BoE deputy governor responsible for financial supervision said: “In their short history, crypto-assets have exhibited high price volatility and relative illiquidity.”
Writing in a letter to the chief executives of banks and insurers he said: “Crypto-assets also raise concerns related to misconduct and market integrity – many appear vulnerable to fraud and manipulation, as well as money-laundering and terrorist financing risks.”
Head of investment strategy at Barclays Smart Investor, Will Hobbs added the rout has not yet done with the market, suggesting bitcoin could drop further down into $4,000 and reach a new bottom.
Mr Hobbs said: “The frenzy surrounding crypto has ebbed and flowed with prices.
“Through the several hundred percent ascent over 2017, to the 70 percent decline since bitcoin’s 2017 peak, there has been no commensurate – or even perceptible – change in the fundamental prospects in the cryptocurrency.
“The same applies for most of its peer group.
“We continue to argue that without a role in the global economy, the intrinsic value of many of these cryptocurrencies still sits a long way below their current trading levels.
“This role is still elusive in many cases, while the arguments behind the idea of a future ‘bitcoin standard’ are still economically illiterate.
“None of the cryptocurrencies currently fulfill any of the criteria that we would look for in an investible asset and we would continue to advise extreme caution.
“The rout in cryptocurrencies is still not finished.”