Bitcoin price falls below £5,000 as market hits ‘panic mode’
Collapse of Turkish lira may be behind mass cryptocurrency sell-off

The cryptocurrency market is in “panic mode” as the values of bitcoin and other digital coins plummet following a series of mass sell-offs.
Bitcoin’s value fell by 6% to a six-week low of $5,880 (£4,620) on Tuesday, Reuters reports, with the virtual currency’s price down by a total of 57% since the beginning of the year.
Ethereum, bitcoin’s closest rival in market value, also suffered significant losses earlier this week, as its price “plunged to a more than one-year low” of $250 (£196) per coin, the news site adds. However, figures posted by CoinMarketCap indicate that Ethereum’s value has since risen to around $280 (£220).
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The exact causes of the sell-offs remain unclear, but analysts believe companies may be capitalising on funds raised through the cryptocurrency boom at the end of last year, says The Independent.
Matthew Newton, an analyst at online digital coin exchange eToro, says that “the crypto market seems to have hit panic mode”.
“As we can see in the case of Ethereum, investors seem to be increasing liquidations of their ICO (initial coin offering) holdings, with significant drops in price and increased volumes,” he said.
The collapse of the Turkish lira against the US dollar last week may also have spooked emerging-market currencies, triggering sell-offs to counter the deficit, Business Insider claims.
Speaking to the news site, Market.com chief analyst Neil Wilson said the continuing decline in cryptocurrency values “puts paid to the notion of cryptos as a safe haven”.
Although there have been cases of people making millions through cryptocurrencies, market experts say the “volatility” of digital coins means investors should not put their life savings into the technology, adds The Independent.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Music reviews: Bon Iver, Valerie June, and The Waterboys
Feature "Sable, Fable," "Owls, Omens, and Oracles," "Life, Death, and Dennis Hopper"
By The Week US
-
Are bonds worth investing in?
the explainer They can diversify your portfolio and tend to be a safer investment than stocks
By Becca Stanek, The Week US
-
Elon has his 'Legion.' How will Republicans encourage other Americans to have babies?
Today's Big Question The pronatalist movement finds itself in power
By Joel Mathis, The Week US
-
What Trump's win could mean for Big Tech
Talking Points The tech industry is bracing itself for Trump's second administration
By Theara Coleman, The Week US
-
Network states: the tech broligarchy who want to create new countries
Under The Radar Communities would form online around a shared set of 'values' and acquire physical territory, becoming nations with their own laws
By Chas Newkey-Burden, The Week UK
-
Paraguay's dangerous dalliance with cryptocurrency
Under The Radar Overheating Paraguayans are pushing back over power outages caused by illegal miners
By Chas Newkey-Burden, The Week UK
-
2023: the year of crypto instability
The Explainer Crypto reached peaks — and valleys — throughout 2023
By Justin Klawans, The Week US
-
Sam Bankman-Fried found guilty: where does crypto go from here?
Today's Big Question Conviction of the 'tousle-haired mogul' confirms sector's 'Wild West' and 'rogue' image, say experts
By Chas Newkey-Burden, The Week UK
-
FTX founder Sam Bankman-Fried arrested in the Bahamas
Speed Read
By Catherine Garcia
-
iPod creator launches new crypto wallet as industry fallout continues
Speed Read
By Justin Klawans
-
Is cryptocurrency still a good investment?
opinion The sharpest opinions on the debate from around the web
By Justin Klawans