The crash in bitcoin prices on Wednesday sent shockwaves across the cryptomarket. Bitcoin fell by close to $40 dollars or over 15 percent. Peercoin sold off by 25% while Namecoin hit a low of – 30% at one point. What was the reason for the sell-off?
Bitcoin Crash Sinks All Ships
Two prominent bitcoin developers released a new version of the software during the weekend called Bitcoin XT. The main goal of the new software is to facilitate bigger blocks. A ”block” is the building material of the bitcoin ”blockchain”. It holds all relevant data for the most recent bitcoin transactions.
You can read about the other proposed changes HERE. Despite the good intentions, the new client triggered fears of a bitcoin split, meaning we would see two networks instead of the current unified bitcoin network. Several catchy headlines ”Bitcoin could split” by major media outlets didn’t help the matter.
After the break of $250, which we noted on Tuesday as an important support level, Bitcoin crashed close to $32 dollars , hitting a low of $218. Today the selling continued with prices hitting a new low at $211.05. This is very close to the double bottom at $210.84. This level was also noted in our article as important support for BTC/USD. After the bounce near $210 we rallied over $20 dollars and we are currently quoted at $233 dollars per coin.
Peercoin Falls by 25 Percent
Peercoin fell by 25 percent since our update last week. During the bitcoin turmoil a lot of $0.329 was reached in PPC prices. Same as with bitcoin, we later saw a strong reversal and Peercoin is currently quoted at $0.372. This is still 16 percent below the prices noted last Thursday.
![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fi.imgur.com%2FVjXW9xo.png&t=613&c=LgSWqajv-ynxMw)
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https://blog.fxopen.com/bitcoin-crash-reverberates-across-cryptomarket/