Bitcoin and other cryptocurrencies are plunging amid a terrible day in financial markets.
Every single large cryptocurrency is down around 25 per cent over the last day. That is after an already terrible few weeks, which have seen bitcoin's value plunge by more than 60 per cent.
The latest drop comes amid financial instability that is dragging down share prices and other financial markets across the world. That began overnight as the Dow Jones began to fall dramatically, but has been matched by stock markets across Asia and Europe.
It's impossible to say how much the continuing fall of bitcoin is linked to the plunge in the stock markets. But cryptocurrency does appear to be tracking the broader financial markets somewhat, and saw a brief rally at the same time the Dow Jones did overnight – before plunging back down again at the same time.
Ethereum, the second largest cryptocurrency, is performing worst of the market, having dropped nearly 28 per cent in the last 24 hours. But many others are doing nearly as badly: both bitcoin and Ripple are down 23 per cent, and bitcoin cash has dropped nearly 27 per cent.
The plunge in bitcoin is putting it perilously close to the $6,000 mark. That's a long way from the heights achieved in December, when it nearly broke through $20,000, and puts it down 63 per cent over the last month.
Cryptocurrencies have been in a dramatic fall over the last few weeks, as a range of different fears – including suggestions of regulation and market manipulation – continue to haunt the market. The "bitcoin mania" of December, when prices would often go up by double digit percentage points each day, is decidedly over and the market has been crashing ever since.
Every single one of the world's 80 largest cryptocurrency has dropped by such dramatic amounts, according to cryptocurrency site CoinMarketCap.