Friday, February 2, 2018

Bubble burst? Bitcoin falls into the $7000 handle as cryptocurrency sector loses a cool $100 billion overnight

Early this morning before U.S. markets have even opened, the price of Bitcoin fell temporarily below $8000 before rebounding back a few hundred dollars.  This means that since it touched an all-time high of over $20,000 on December 17, the price of Bitcoin has fallen nearly 65% in a month and a half.

However Bitcoin is not the only cryptocurrency to feel the wrath of what is perhaps the popping of the crypto bubble as just in one day between Thursday and this morning the sector lost over $100 billion in market cap.

Bitcoin and other digital currencies have lost over $100 billion in value since Thursday. This represents more than 20 percent of the entire crypto market. 
The total market capitalization or value of all cryptocurrencies in circulation was $402.9 billion at the time this article was written. 
All major cryptocurrencies fell from 15 to over 40 percent on Friday, continuing the sell-off the day after India's Finance Ministry announced the country wants to "eliminate" the use of cryptocurrencies in criminal activities. 
Bitcoin fell below $8,000 for the first time since November. Ethereum and ripple were down 28 percent and 35 percent respectively. 
All but one of the top 100 cryptocurrencies on CoinMarketCap's list were trading lower. DigixDAO was the only exception, with the digital currency trading 40 percent higher. Its growth is reminiscent of the 'pump-and-dump' strategy, which many will be familiar with from the movie, 'The Wolf of Wall Street’. Under the strategy, a specific stock is pushed hard and investors are promised large returns. After prices peak, the owners and early investors quickly sell as many shares as possible, while the others lose. – Russia Today


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