Bitcoin drops below $7,000 for the first time in days after closure of Bitcoin Classic

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Bitcoin has slipped below its latest milestone (Source: Getty)

Bitcoin just dropped below $7,000 for the first time since Tuesday after a scaling solution decided to shut up shop.

Bitcoin Classic, one of several forks in the main Bitcoin currency, said today that the project would end because it had been superseded by Bitcoin Cash.

Classic was one of many projects aiming to increase the block size of Bitcoin, with a proposed target of 2MB rather than 1MB.

But a hard fork in the cryptocurrency created Bitcoin Cash earlier this year, which allows for adjustable block sizes and a default of 8MB.

Today Bitcoin dropped 4.9 per cent to $6,795, down from an opening price of $7,146.78. The cryptocurrency hit a high of $7,330 earlier today.

The closure of Classic follows the suspension of another split, called Segwit2x, after the community could not agree on the upgrade. The planned increase to the blocksize was proposed as a scaling solution for Bitcoin, but proved unpopular with many Bitcoin buyers.

Bitcoin smashed the $7,000 barrier near the start of this month, continuing an aggressive rise over the past year which has continued despite several dramatic drops in its value.

Financial services leaders are split over the potential of the cryptocurrency, with JPMorgan boss Jamie Dimon repeatedly warning against it and calling cryptocurrencies "fraud".