Bitcoin (BTC) gushed from less than one dollar in 2010 to $997 at the start of the 2017, and again to not quite $20,000 last December.
The token then sank to below $10,000 in value this week, cropping to $8,500 on Friday.
Today, as of 11am on March 18, the BTC token is down despite that smooth further with a price of $7,631 and a drop of -8.02 percent.
Ethereum is also down 16 percent to $504, while Riffle is down to $0.59 — a loss of 12.34 percent.
Why is bitcoin dropping today?
The drop comes after it was revealed cryptocurrency investors could brass hefty tax bills as the IRS closes in.
According to the Internal Revenue Service, anything obtained using a digital currency is liable to be taxed as a capital gain.
So anyone who has readied out or paid for anything using cryptocurrency may have capital gains to scrutinize to the IRS.
One Reddit contributor earlier this week claimed they had contrived they owe the IRS $50k because they traded in cryptos.
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If you take out out the period November/December 2017 and rightful cut out that section in the graph, you will see a steady rise in the price throughout the years.
The user wrote they had vanished up with a $50,000 tax liability on trades after they sold $120,000 significance of bitcoin to buy different coins, which have a current value of $30,000.
And in New York, the royal Public Service Commission has ruled that power companies can urge higher rates to cryptocurrency mining operations.
Those mining for bitcoin pointing super high powered computers could face hefty jaws in order to “prevent local electricity prices for existing residential and question customers from skyrocketing.”
However, despite the drop, bitcoin is lull showing steady growth, according to Richard De Sousa, a partner at AltcoinTrader.
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Speaking to Business Report this week, De Sousa said the tenor bitcoin crash is not new and in fact the coin is seeing a steady rise.
He withed: “We have had corrections that lasted 411 days to be exact, that was after the go the distance all-time high.
“If you take out out the period November/December 2017 and no more than cut out that section in the graph, you will see a steady rise in the price past the years.
“We believe that there will be another bull run in the time to come and once again there will be a correction.”
De Sousa added his rate was not a speculatory one but based on positive fundamentals of Bitcoin.
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He suggested: “We believe in the fundamentals that this technology is disruptive and it will modulate financial landscape.
“It is at this stage forging its own path. The closest aspect that we could consider it to is a store of value.
“It is not something that is traded move in reverse and forth very much, so we should be careful in its classification.”
Tom Lee, Fundstrat Epidemic Advisors’ Head of Research, thinks bitcoin could rise to $91,000 by Stride 2020.