• For the first time of the year, Bitcoin drops more than 7 percent this Wednesday after long stable months.
• The digital currency plunge to $5, 640, hitting the lowest price record of the year according to Coindesk price data.
Other cryptocurrency markets also suffered unusual losses, Ether (ETH) fell as much as 13 percent while Ripple (XRP), the third largest cryptocurrency by market capitalization dropped 15 percent. This downtrend movement took place as most of the cryptocurrency market also suffered notable losses, declining from a total value of $210 billion earlier in that day to almost $180 billion by approximately 15:30 UTC according to CoinMarketCap.
To explain things for what reason did this drop happened, practically due to an upcoming hard fork of another cryptocurrency "Bitcoin Cash (BCH)" according to founder and CEO of BKCM, Brian Kelly.
"When you do a software upgrade, everybody usually agrees. But in this particular case, everybody is not agreeing." Kelly added and a "civil war" followed. Traders are concerned that bitcoin and bitcoin cash markets would run into a slowdown or "chaos" after the software upgrade (hard fork).
"People started selling. That triggered stops. Everybody got concerned," Kelly explained. "And that's what happened today — the entire crypto-market sell down." Kelly expects it to be a "very short-term" event.
To sum up, there are three reasons for this drop-down event according to CNBC, its because of;
• Bitcoin cash Hard fork
• Crypto civil war in full swing
• Short-term selling event.