No Place To Hide: Investors Flee Cryptocurrencies as Billions Wiped Off Market
Published Jan 17, 2018 03:20PM ET
Investing.com – The growing threat of regulation continued to weigh on cryptocurrencies as Ripple’s XRP deepened its retreat, battling to remain above $1, while bitcoin hovered precariously above $10,000.
The growing threat regulation poses in the cryptocurrency industry has led to panic selling, wiping billions of dollars from the cryptocurrency market.
Since hitting a peak of about $829 billion, the total cryptocurrency market cap has fallen nearly 50%, roughly $350 billion, to about $478 billion, according to data from coinmarketcap.
The fear, uncertainty and doubt, referred to in crypto parlance as “FUD” comes amid reports this week suggesting that South Korea and China were preparing a set regulatory measures aimed at curbing or even banning cryptocurrency-related activity.
Bitcoin, the most valuable cryptocurrency by market, was one of the major victims of the sell-off extending its losses as it fell below $10,000 for the first time before paring gains.
It is not the first time that bitcoin has cracked under regulatory pressure: During the latter months of the year in 2017, the popular digital currency came under intense selling pressure as Beijing ordered cryptocurrency exchanges to cease operations.
Bitcoin critics have been quick to jump on the ‘bitcoin bubble’ bandwagon, predicting that the sell-off represents the start of the end for the popular digital currency. Former Wells Fargo Chairman and CEO Dick Kovacevich said the popular digital currency was a “pyramid scheme,” and added that he was “surprised it isn't even lower."
Ripple's XRP, meanwhile, traded violently around the $1 level, falling to a low of $0.85 in less than two weeks after notching an all-time high $3.28 on the poloniex exchange as investors' resolve to “hodl” - hold on for dear life - appears to be under intense scrutiny.
Ethereum, the second largest cryptocurrency by market cap, fell 8.51% to $962 well below its recent all-time high of $1,423.2 set on Jan.13.
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Written By: Investing.com
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