The Bitcoin price (BTC/USD) has tumbled to its lowest level in more than three weeks amid a sharp downturn felt across the broader digital currency market.
The original cryptocurrency saw some significant losses on Wednesday, as it dropped below the $6,600 level and to an intraday low of $6,538.96 in the early hours of the session. While the digital currency managed to stabilise in subsequent trading, it still ended the session in the red, closing at $6,585.53, down from its opening level of $6,640.29.
Shortly after the start of today’s trading, Bitcoin experienced a much steeper drop, with its price plunging nearly 5%. At the time of writing, the Bitcoin price was hovering around $6,270, according to data from digital currency tracker Coinmarketcap. Bitcoin last traded below its current levels on September 19.
Bitcoin’s drop is part of a larger cryptocurrency slump that has resulted in all major digital coins taking big hits. Altcoins such as Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Sellar (XLM) have all seen double-digit percentage losses.
The slump follows a recent report by the International Monetary Fund (IMF), which warned that the rapid growth of digital currencies could pose some risks to the global financial system.
“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,” the IMF said, as quoted by CNBC.
Meanwhile, a separate report from the Financial Stability Board (FSB) concluded that cryptocurrencies currently did not pose a threat to the global economy, but the sector needed to be watched closely.
“Based on the available information, crypto-assets do not pose a material risk to global financial stability at this time. However, vigilant monitoring is needed in light of the speed of market developments. Should the use of crypto-assets continue to evolve, it could have implications for financial stability in the future,” the FSB said in a press release, issued yesterday. “Such implications may include: confidence effects and reputational risks to financial institutions and their regulators; risks arising from direct or indirect exposures of financial institutions; risks arising if crypto-assets became widely used in payments and settlement; and risks from market capitalisation and wealth effects,” it added.
In today’s trading, the Bitcoin price stood at $6,273.16, as of 09:07 BST The digital coin has lost 4.4% of its value in the past 24 hours. Its total market ca currently stands at $108.6 billion, which represents 53.9% of the combined value of all digital coins.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.