BTC had begun to find stability over the past few days – but the reduced volatility appeared to be short-lived when the leading crypto bottomed out at $3,310 (£2,600) at 1.28am on Friday.
The sudden price plunge meant the asset had dropped to its lowest level – in terms of price – in all of 2018.
In a report released on December 5, Bloomberg technical analyst Mike McGlone explained bitcoin is currently stuck in a downward (bearish) momentum.
He said: “There’s little to prevent fading bitcoin prices from reaching the continuous mean of $1,500 (£1,170).
“A rush to the exits among investors seems to be in place.
“The hard fork was a key trigger that signalled the technology is way too nascent.
“You had these dicey characters threatening to destroy each other and institutions said ‘It might be best if we stay away from this for a while’.”
The so-called “hard fork” to which Mr McGlone referred was widely blamed for November’s price plummet.
A chart shows the price falling over the course of 2018
Mr McGlone’s report also mentions the recent Securities and Exchange Commission (SEC) crackdown on Initial Coin Offerings (ICOs) and the commission’s hesitancy to approve a bitcoin Exchange-traded fund (ETF).
November saw bitcoin’s price fall by more than 40 percent, racking up the largest monthly price drop for the asset in the past seven years.
However, overall adoption of the asset has been increasing since its inception a decade ago after an individual – or group of individuals – by the alias of Satoshi Nakamoto posted a paper named ‘Bitcoin: A Peer-to-peer Electronic Cash System’ to a group of so-called Cypherpunks.
Of the cryptocurrency’s future, Mr McGlone said: “The trend is lower prices, lower volatility, reduced speculation, and the preponderance of stable coins.”
Another crypto expert, Anthony Pompliano, concurred with Mr McGlone on the possibility of BTC dropping further.
He said: “85 percent from the all-time high is about where we’ll end up.
“Puts it around $3,000 (£2,300). Came close over the weekend but probably a little bit more to fall.”
But CoinCorner’s co-founder and CEO, Danny Scott, was more positive in his outlook for the digital asset, explaining the “industry is still very young”.
He told: “If we look back over Bitcoin’s short 10-year history, it has experienced many price fluctuations – something that is to be expected given that the industry is still very young.”