In the past few weeks, cryptocurrencies have almost only gone up. Now the rally seems to have come to an early end: Bitcoin and co. Prices are falling. Investors wonder why that is so.
The digital currency market remains under significant pressure. On Tuesday, large cryptocurrencies such as Bitcoin or Ether again lost significant value. With many digital systems, the price losses were even in the double-digit percentage range compared to the previous day. Overall, market sentiment seems to have been hit hard after the recent euphoria.
Bitcoin, the oldest and by far the largest internet currency in the market, fell back by more than 15 percent at times on Tuesday morning. A low of 45,000 US dollars was marked on the Bitstamp trading platform. Bitcoin was still much higher at the weekend, reaching a record high of $ 58,354. Since then it’s been going downhill.
The second largest crypto currency in terms of market share, Ether, lost just as significantly as other digital stocks, including XRP, Litecoin and Bitcoin Cash. Sometimes the losses were 20 percent or more.
Too much investor hype?
The market value of all roughly 8,500 cryptocurrencies fell to $ 1.35 trillion after hitting a record high of about $ 1.76 trillion over the weekend. All Bitcoins in circulation were worth around $ 850 billion on Tuesday. Last Friday, the $ 1 trillion threshold was exceeded for the first time.
The price increases in the past weeks and months are unparalleled.
A year ago, Bitcoin was $ 10,000
Just over a year ago, a Bitcoin was worth less than $ 10,000, and since then its value has risen almost sixfold. Such sharp price increases rarely turn out to be sustainable in retrospect.
The market recently received support from the increased interest of large companies and long-term investors in digital currencies. First and foremost, the electric car maker are Tesla and to name his boss Elon Musk.
The company has invested billions in Bitcoin and wants to accept the crypto currency as a means of payment in the future.
Billionaire Musk has long been an ardent advocate of digital currencies and especially Bitcoin. However, when asked, he recently expressed a little more cautiously about what he saw as the high price of Bitcoin. That too has caused disillusionment on the market.
[ source link ]
Cryptocurrency price slump Bitcoin crashes percent