Top 20 cryptocurrencies lose $200 billion in 24 Hours
The world’s major cryptocurrencies have endured heavy declines of at least 10% over the past two days, with one 24-hour period seeing nearly $200 billion wiped off the total value of the top 20 cryptocurrencies by market capitalisation.
Bitcoin dropped by more than 25%, which seems to have affected the market as a whole. Ethereum dropped 31% to $871 and Ripple fell to under $1. This drop is value is being accredited to uncertainty of regulation and possible bans in China and South Korea.
“The market is correcting off the back of news that China is moving to crack down on cryptocurrency trading. Chinese investors are likely spooked having heard the news and the market is on edge as a result,” Iqbal Gandham, the UK managing director at eToro said. “But we don’t expect to see a major sell-off. Bitcoin in particular has gone through this cycle before, eventually shrugging off regulatory clampdowns from governments and central banks after initially falling in price.”
The dramatic drop highlights the oft-reported volatility of the markets in question. The last drop of this magnitude was just over a month ago in December 2017 when Bitcoin fell to just above $10k. Today it dipped below that figure having been worth as much as $20k in the same month last year. To put that into context, Bitcoin is still around 1100% higher over the past 12 months.
The volatility of these markets, though, is often exacerbated by the mainstream media, with prominent outlets claiming the so called ‘Bitcoin bubble’ has burst. With speculation so rife from the casual investor, these reports can have a profound effect on potential market values, despite experts like Mati Greenspan – senior market analyst at eToro – asserting that activity of this nature isn’t abnormal in the slightest and that cryptocurrencies aren’t just castles built on sand. “The action we’re seeing may seem dramatic but is really quite normal for this market,” he told CNBC. “All in all, this drop has brought us back to the prices that were traded about a month ago for most coins.”