Cryptocurrency ‘bloodbath’ as Bitcoin falls 30% in a week

Bitcoin was trading 7.5% down on the day on Tuesday – its lowest level for more than a year according to the Bitstamp exchange – hours after US tech stocks endured fresh losses on Wall Street.

It left Bitcoin valued just above $4,300 (£3,342).

Only 11 months ago, a bull run for the digital currency stopped just shy of a record $20,000 but it has remained largely on a downward spiral since.

Other cryptocurrencies were also feeling the pain with Ethereum’s Ether losing 10% and Ripple’s XRP down 13% on the day.

Naeem Aslam of Think Markets said: “Fundamentally speaking, the current sell-off is once again triggered due to the regulatory pressure.

The SEC (US Securities and Exchange Commission) reminded the crypto world that it has the final say over anything which smells like a security.

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“The department issued civil penalties against two cryptocurrency companies because they failed to register initial coin offerings as securities.”

Despite the introduction of a futures market to help ease market volatility, see-saw values have continued to plague attempts to bolster credibility.

Some of the latest falls have also been attributed to a battle for control of a smaller crypto operator called Bitcoin Cash.

Neil Wilson, chief market analyst at markets.com, said there was growing evidence of a potential link to the wider tech sector’s woes as the so-called FAANG stocks come under renewed pressure.

He described the Bitcoin slump as a “bloodbath”, adding: “Where is the incentive to buy?

“It does rather look like the bottom is coming out of this market. Bitcoin has easily breached key psychological support at $5,000 and with it trading at $4,500 the move back to the September 2017 lows at or just below $3,000 looks eminently achievable.

“The spillover into other crypto assets matters. Bear target should be 0, as that is what they’re worth.”

2018-11-21T10:54:52+00:00By |

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