The price of Bitcoin has dropped sharply in the past seven days, which has got cryptocurrency investors worried.
Following Bitcoin reaching a high of $7,700 last week, the token dropped to a low of $5,600 this past weekend.
The price drop has been linked to Bitcoin players suspending a plan to increase the block size in the Bitcoin blockchain through SegWit2X.
Following the plan’s suspension, Bitcoin saw a relatively large sell-off, with investors moving to alternative cryptocurrencies such as Bitcoin Cash.
Conversations on cryptocurrency sites and social media have discussed what the failure to implement SegWit2X means for Bitcoin, with many stating this is the beginning of the end for Bitcoin.
Bitcoin Cash developer Juan Garavaglia even went so far as to say Bitcoin was “unable to execute, has a poor roadmap, and is disconnected with market needs”.
Whether the suspension of SegWit2X is an axe blow to Bitcoin’s future remains to be seen, but what is certain is that the cryptocurrency has suffered big price drops before – and recovered.
In the world of cryptocurrency, massive upward or downward movements are commonplace, with a daily increase of 140% not unheard of.
The fast gains and continual upward movement of Bitcoin this year means that any drop may be seen by investors as disastrous, particularly those who have purchased cryptocurrency for the first time in 2017.
If you are new to Bitcoin, or an experienced investor who wants a reassuring voice, the graphs below put the recent price drop into perspective.
The Bitcoin price drop from 6-13 November 2017.
A 1-month view shows Bitcoin above its levels at the middle of October.
Bitcoin has seen huge gains over the past year, up over 800% on local exchange Luno.
The graph below from Bloomberg shows that Bitcoin has experienced multiple price drops this year, but maintained an upward trajectory overall.
Graphs from CoinDesk BPI.