Over half a trillion dollars of value has been wiped off the entire cryptocurrency market in just under a month…On January 7, the market capitalization or value of the entire cryptocurrency market hit an all-time high of $835.69 billion… on Tuesday, the value of the cryptocurrency market had plunged to $278.53 billion, marking a more than $557.1 billion drop…Bitcoin briefly dipped below $6,000 for the first time since mid-November…[its] market cap has fallen $233.5 billion…Ethereum…traded around $577 on Tuesday, marking a near 60 percent decline…Third-largest cryptocurrency ripple is off more than 80 percent from its record high of $3.81.Both ripple and ethereum are higher than a year ago.
The sell-off appears to be prompted by a number of factors.
- On Monday, Financial News, a publication closely affiliated with the People’s Bank of China, reported that the central bank will block all platforms related to cryptocurrency trading and the issuance of so-called initial coin offerings (ICOs).
- And India’s Finance Minister Arun Jaitley said last week that the country wants to “eliminate” the use of digital currenciesin criminal activities, though India is a minor player in cryptocurrencies and the government apparently has yet to act.
- Major banks in the U.S.and U.K. have moved to block people from using credit cards to buy cryptocurrencies.
- Other worries are plaguing the digital currency market, particularly around a cryptocurrency called tether. Some experts have suggested that tether, which is pegged to the S. dollar, could be being created to prop up the bitcoin price.
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