The cryptocurrency markets experienced a significant slowdown (Eastern Local Time) on Wednesday. CNBC reported that the value had dropped to just under $ 13 billion in just three hours.
Late Wednesday, cryptocurrency tracking site CoinMarketCap listed Bitcoin as down 4.26 percent, Ethereum up 9 percent, XRP up 9.95 percent, and Bitcoin cash up 10.54 percent over the last 24 hours. Of all the major cryptocurrencies listed on the front page of the site, only a handful had gained in value, with the vast majority losing.
At 10:23 HK / SIN, Bitcoin had fallen nearly 5 percent to $ 6,303, while XRP and Ethereum were tanking over 10 percent, according to Coinmarketcap.com. It is not uncommon to see Bitcoin lead other digital tokens lower.
… Bitcoin, XRP and Ethereum have not recovered to the record levels of late 2017 and early this year. On Thursday, Bitcoin was more than 68 percent from its record high of $ 19,783.21, which hit it on December 17 of last year.
Last month, Bloomberg reported that the MVIS CryptoCompare Digital Assets Index 10 fell 80 percent from its January high, outperforming the Nasdaq Composite Index by 78 percent after the dot-com bubble burst in 2000. Neil Wilson, com's chief market analyst, warned the news agency, "It just shows what a massive, speculative bubble the crypto-thing was – as many of us warned at the time."
Other analysts have recently issued similar warnings, saying that the cryptocurrency market may be heading for impending implosion. As the CNBC noted, the International Monetary Fund recently published a report that contained a dire suggestion that continued rapid growth in cryptocurrency could "create new vulnerabilities in the international financial system".
In the past year, US regulators, such as the Securities and Exchange Commission, have begun (slowly) to tackle alleged fraudsters in the crypto market, while their foreign counterparts in countries like China have been much more aggressive. Cameron and Tyler Winklevoss, the twin brothers who once sued Facebook founder Mark Zuckerberg before investing heavily in cryptocurrency, offered to create the first Bitcoin Exchange-Traded Fund to be launched earlier this year by the SEC.
CNBC noted that regulators reviewing the Winklevoss proposal were particularly concerned that Bitcoin was vulnerable to fraud and market manipulation. On Wednesday, Reuters reported that "hacking of exchanges and trading platforms" in the first nine months of 2018 had increased by 250 percent year-on-year, with total losses estimated at $ 927 million.
The Cryptocurrency Boom and Bust cycle is nothing new, and as the Wall Street Journal reported last month, experienced crypto currency investors tend to be "optimistic about the long-term potential of the market and pointing out its short but tumultuous history." (A common point is that someone who bought years ago, when prices were much lower, would still have made huge profits, though it could be pointed out that many other people had the sack in their pockets.) One brief review of posts on the reddit panel by cryptocurrency industry publications indicated that some blame a bad day on the stock market. Others pointed to deliberate manipulation by a "whale," one of an estimated 1,000 or so investors believed to control 40 percent of all bitcoins, or simply a "sensationalist narrative" in the media for the downturn.
Of course, it is possible that this specific downturn is a blow to the radar, even though CoinMarketCap measured the crypto-currency market cap at just over $ 835 billion earlier this year. At the time of writing, it is under $ 205 billion.