Bitcoin price: crypto market falls into ‘chaos’ as Facebook Libra delays loom
Market drops by 20% in a matter of hours as analysts blame ‘technical issues’

Bitcoin values are in a state of “chaos” after prices plummeted by almost £1,000 in the space of an hour.
The virtual currency market experienced a “dramatic crash” on Tuesday afternoon, causing bitcoin prices to “plunge” in a matter of “minutes”, The Independent reports.
The cryptocurrency began trading at $9,790 (£7,950) mark on Tuesday morning, before slipping to $9,490 (£7,700) at about 7.30pm, according to ranking site CoinMarketCap.
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.
Prices then fell sharply to $8,420 (£6,830) an hour later, and values have continued to decline, the ranking site notes. As of 2.30pm UK time today, bitcoin was trading just above the $8,000 (£6,490) mark.
As if often the case in the crypto world, bitcoin’s declines sent shockwaves through the rest of the market. The Independent says Tuesday’s crash resulted in 20% being “wiped off all of the biggest digital currencies”.
Is Libra coin to blame?
Facebook’s upcoming cryptocurrency, Libra coin, was widely regarded as being one of the key drivers of bitcoin’s resurgence after its grand unveiling in June.
However, the digital coin has faced intense scrutiny from banks and regulators over competition and privacy concerns. It now appears that Facebook chief, Mark Zuckerberg, may not release the coin in 2020, as had been originally planned.
Speaking to Japanese newspaper Nikkei Asian Review, Zuckerberg said: “Obviously we want to move forward at some point soon [and] not have this take many years to roll out.
“But right now I’m really focused on making sure that we do this well… A lot of people have had questions and concerns, and we’re committed to making sure that we work through all of those before moving forward.”
Zuckerberg’s comments came after Tuesday’s price crash, so it’s unlikely to be the driver behind the crash.
However, Forbes hints that Zuckerberg’s comments may have dampened the spirits of investors, resulting in bitcoin prices dropping by a further 5% since Tuesday.
So what caused the value slump?
Analysts are blaming a “a number of technical issues” for the crash, the Independent reports. This includes problems with Bakkt, a trading platform for institutional investors, which has seen “lower than expected” trading volumes since its launch on Monday.
“Pessimism over the level of activity on Bakkt sparked this most recent sell-off,” Simon Peters, an analyst at online trading firm eToro, told the news site.
However, he said the cryptocurrency’s “fundamentals such as hashrate”, the speed in which computers crunch the bitcoin code, are looking “strong” and “adoption of crypto is still moving forward at pace.
“With those conditions in mind, we could see the price rise back up to $10,000 within the space of the next month,” Peters concluded.
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
-
What does 'conquering' Gaza mean to Israel?
Today's Big Question Benjamin Netanyahu's cabinet has approved a plan to displace much of the Palestinian population while seizing and occupying the territory on a long-term basis.
-
Casey Means: the controversial 'wellness influencer' nominated for surgeon general
In the Spotlight Means has drawn controversy for her closeness to RFK Jr.
-
Trump taps Fox News' Pirro for DC attorney post
speed read The president has named Fox News host Jeanine Pirro to be the top federal prosecutor for Washington, replacing acting US Attorney Ed Martin
-
Social media: How 'content' replaced friendship
Feature Facebook has shifted from connecting with friends to competing with entertainment companies
-
Meta on trial: What will become of Mark Zuckerberg's social media empire?
Today's Big Question Despite the CEO's attempt to ingratiate himself with Trump, Meta is on trial, accused by the U.S. government of breaking antitrust law
-
What does an ex-executive's new memoir reveal about Meta's free speech pivot?
Today's Big Question 'Careless People' says Facebook was ready to do China censorship
-
What's Mark Zuckerberg's net worth?
In Depth The Meta magnate's products are a part of billions of lives
-
What Trump's 'tech bros' want
The Explainer Elon Musk, Mark Zuckerberg and Jeff Bezos had 'prime seats' at the president's inauguration. What are they looking to gain from Trump 2.0?
-
Big tech's big pivot
Opinion How Silicon Valley's corporate titans learned to love Trump
-
Meta's right turn on red: Zuckerberg turns toward MAGA
Talking Points Zuckerberg is abandoning fact-checkers to embrace "free speech," a familiar refrain for Trump's cohort
-
What Trump's win could mean for Big Tech
Talking Points The tech industry is bracing itself for Trump's second administration