The market bellwether dragged down all other altcoins and tokens as the market lost $30 billion from its peak.
The $4,000 level was considered an important position of support, and as the fears increase, Bitcoin may see more days in the red as it backtracks to lower levels.
The recent pessimism send down the value of the cryptocurrency market to $134 billion, down $30 billion from its recent peak. Some investors see this deflation as healthy, making the exponential growth more linear. But Bitcoin and the others have had peaks in the past, which they could not support and continued for years on depressed prices.
Bitcoin "won't end well," said JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon. He went on to compare Bitcoin to the tulip madness, and added he would fire any employee caught trading Bitcoin.
“I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous,” Dimon said.
But Bitcoin still carries the marks of an in-demand investment. According to a Bank of America Merill Lynch survey on global funds sentiment, being long on Bitcoin is the most crowded trading position as of September 2017. The survey queried a pool of 214 fund managers with $629 billion under management.
According to some experts, the crowded trade means that any sentiment switch could send traders to the other position, being bearish on Bitcoin. And cryptocurrency markets are still small enough to see a very speedy drop in prices across the board for even deeper losses.