Crypto Carnage Continues As Bitcoin Cash Fork Battle Builds -Zero Hedge
"Bitcoin has extended its recent collapse, plunging to $5100 this morning (the lowest since Oct 2017) and down 75% from its record highs in Dec 2017. The latest leg lower seems driven, among other things, by anxiety over the split in Bitcoin Cash.
The cryptocurrency industry has now lost more than $660 billion in value from a January peak, according to data from CoinMarketCap.com, with the latest plunge coming as the two Bitcoin Cash software-development factions failed to agree on a way to upgrade the offshoot of the original Bitcoin, leading to a computing power arms race....Bloomberg reports that even Thomas J. Lee, managing partner at Fundstrat Global Advisors and a long-time crypto bull, slashed his year-end price target for Bitcoin to $15,000 from $25,000. The target is based on a fair value multiple of 2.2 times the breakeven cost of mining, which the firm pegs at $7,000, according to a report last week. 'Crypto-specific events have led to greater uncertainty in the crypto market, including the contentious hard fork for Bitcoin Cash,' Lee said in the note. Bitcoin’s break below $6,000 'has lead to a renewed wave of pessimism,' he said."