Bitcoin Price Plunges to $230, Litecoin to $1.50 as Selling Accelerates

Bitcoin prices (BTC/USD) tumbled once again to fresh 14-month lows. On BTC-e, the price fell sharply to $230, a drop

Bitcoin prices (BTC/USD) tumbled once again to fresh 14-month lows.

On BTC-e, the price fell sharply to $230, a drop of over 13% in 5 hours. It is currently trading at $240 and the selling may not yet be over.

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Yesterday’s dip to below $260, its previous 14-month low, likely served as a catalyst for further selling. We are also seeing an unwinding of positions as whatever remains of last year’s November gains is gradually consumed.

Today’s prices are the lowest since November 5, 2013, when bitcoin was in the earlier stages of its rise to above $1,000. We may thus see a further unwinding of positions, perhaps from early adopters, which will pressure prices closer to $200 and perhaps lower if the momentum is strong enough.

Year to date, BTC/USD has lost as much as 25%.

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Volume peaked to over 3,000 BTC/hour at the climax of the selling. It has since been choppy, averaging 500 BTC/hour.

For its part, Litecoin (LTC/USD) set a new 14-month low of $1.52 during a period of flash selling. After returning to the $1.70s, it is once again challenging the low, currently trading at $1.55 on BTC-e.

The LTC/BTC rate is hovering near 0.0065 as both coins have experienced a similar scale of loss.

Most other cryptocurrencies are in the red in dollar terms, mostly due to the bitcoin losses. In bitcoin terms, most are relatively unchanged.

Bitcoin prices on BTC-e are $5.50 (2.3%) below those of its peers, an above average offset.

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