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Bitcoin and other cryptocurrencies slumped again on Monday as sentiment continued to sour over the outlook for the industry following a split in one of the main tokens and amid a step up in regulatory scrutiny.
Bitcoin, the first and best known of the cryptocurrencies, was down 7.3 per cent at $5,056.53, after having fallen below the $5,000 mark to hit its lowest level in 13 months earlier in the session, according to data from Coindesk.
Others dropped even more, with Ethereum, the third-largest digital currency by market capitalisation, tumbling nearly 12 per cent to $150.72. Litecoin fell by a similar margin to $36.95. XRP, a token associated with Ripple, fared the best among the virtual currencies, dropping only 2.9 per cent to $0.4958.
The decline marks the eighth consecutive day of selling for bitcoin and takes the once high-flying currency down 75 per cent from the peak of around $20,000 reached in December 2017.
The moves lower come in the wake of a so-called “hard fork” — or split — in bitcoin cash. The cryptocurrency, which itself is a clone of the original bitcoin, split into two different versions last Thursday after the coin’s developers and miners could not agree on the future direction for the cryptocurrency. The split, and the prospect of more smaller cryptocurrencies splitting up, has raised questions over the diluting effects that these moves could have on the value of existing tokens.
CoinMarketCap, a crypto statistics website, for example now lists prices for more than 2,000 cryptocurrencies.
Bitcoin came into being in the months following the autumn 2008 collapse of Lehman Brothers and had capitalised in the distrust in governments and currencies backed by states. But recent events have highlighted the chaotic nature of the industry and whether cryptocurrencies can be a reliable store of value.
All this is coming at a time of heightened regulatory scrutiny over the industry.
Last week, two companies that raised money in 2017 through cryptocurrency sales were forced by US regulators to return funds to investors after failing to register their initial coin offerings as securities. The SEC’s settlement with Paragon Coin and CarrierEQ has raised concerns that other companies could be forced to do the same.


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