Investing.com - Cryptocurrency prices slumped on Tuesday in Asia, with Bitcoin dropping below the $8,000 level for the first time in more than a week.
Bitcoin was down 8.6% to $7,971.6 by 11:30 AM ET (03:30 GMT), its biggest fall in two weeks. The largest digital currency reached a year-to-date high of $8,925.5 on May 30.
Today’s sell-off has erased all gains from May 26 when the coin tested the $9,000 resistance a couple of times before plummeting.
Ethereum plunged 9.3% to $245.88. XRP fell 10.7% to 0.40839, while Litecoin lost 11.1% to $103.647.
Cryptocurrencies received a boost in May amid reports that Facebook (NASDAQ:FB) and JPMorgan (NYSE:JPM) are developing their own coins, confirming renewed institutional interest.
The reason behind the fall today was unclear, but some analysts have suggested that the pullback was likely given the rapid acceleration seen in the popular crypto, which recorded its fourth-straight monthly gain last week.
Peter Schiff of Euro Pacific Asset management warned before the sell-off that the crypto market has “an abundance of fake buying sentiment” and that “the cryptocurrency serves neither the purpose of money nor a store of value.