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.


The risk of loss in the trading of stocks, options, futures, foreign exchanges, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and foreign exchanges involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.