Friday marked a slamming on cryptocurrencies with about $100 billion being wiped off from the global cryptocurrency market in a span of just 24 hours at the back of major selling. Bitcoin price plunged by over 15% to slide below $9,000. The digital currency saw a turbulent trading in 2018 year to date, whereas in 2017, Bitcoin saw its price rising by more than 1500% from the beginning of the year. This dip over the past months was partly due to the crash in the prices of the commodity and lack of regulation. Many countries including India have joined China demonstrating the hesitance towards use of Cryptocurrency, while South Korea aimed at regulating Bitcoin and similar currencies such as Ripple and Ethereal. It is expected that there will be more of such protectionist regulation which will strain Bitcoin price that may even drop further. In addition, concerns that bitcoin price was manipulated on a major exchange called Bitfinex have sparked the downswing. Other digital currencies including Ethereum and Ripple witnessed the price fall as well. The recent hype is further masked by Facebook announcing its intent to ban ads on its site.
Looking at the past one year, Bitcoin, Ethereum and Ripple have grown by 1600%, 11,200% and 28,700%, respectively. Then, Cyder was launched as a sandbox for cryptocurrency developers whereas RussiaCoin is on a similar line of popular Litecoin and Doecoin currencies. There are various other currencies like The Swap Token coin and this one has been associated with programs with some interesting names like Ponzi and Troll payment. Ignis was also launched and its initial price turned to be a bit steep but on the other hand its twin currency, the Ardor coin, soared in December 2017.
The cryptocurrencies are seen to be linked to annual returns as high as over 3500% in the past while the stock market returns are much lower. Thus, the investors betting on cryptocurrency can make huge returns when the pendulum swings to a high level, which does not seem to hold good at the moment. The key thing to note is that Blockchain is the infrastructure that virtual coins are built on and it is responsible for recording all the transactions digitally.
Now from this New Year, cryptocurrencies seem to undergo some stabilization. Bitcoin has traded in a roughly $4,800 range throughout last few days and Ripple was at high and almost double its low. Lately, we could see that Bitcoin came very close to losing half of its value as seen for Ethereum. Ripple also lost three-quarters of its value from peak to trough. Litecoin also saw a significant loss. Moreover, the magnitude of these price falls had a powerful impact on the market cap with Bitcoin losing around $137.5 billion of market cap and whereas Ethereum lost approximately $63.3 billion of market cap.
On the other hand, it is expected that in 2018, cryptocurrencies like bitcoin might be utilized for international trade on a moderate basis. In effect, all the big G7 central banks are said to take the help of external fund managers to invest in cryptocurrencies. But still investors are hesitent to put money in the digital currencies and they still look for the stocks which deal with the principle technology.
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