The leading cryptocurrency and many of its rivals have declined at an alarming speed today.
Bitcoin has been steadily dropping in value over the previous few weeks, a surprising contrast to the enormous growth it saw annually. It now sits at $12,157 after a rough 24 hours that saw its value plummet from $14,000 down to $11,400. That’s a 40 percent decrease in the record-high cost of about $20,000, which it attained exactly one month ago.
Other cryptocurrencies saw even sharper declines. Etherium, the third-most valuable cryptocurrency and possibly Bitcoin’s largest rival, fell 20 per cent to $1,134. Dash, Zcash, Monero, and also the famed Dogecoin, amongst others, all plunged between 15 to 25 per cent in the previous 24 hours. Only 3 cryptocurrencies in Coinmarketcap’s top 100—Tether, Ethos, and Neblio—are in the green.
A cryptocurrency is a kind of electronic money that isn’t regulated by banks or the government. It uses cryptography techniques to guarantee secure transactions and control the creation of new components.
Often caused by government regulation, the following phases of decrease are a worrying sign of the marketplace’s volatility. This isn’t the very first time we’ve seen Bitcoin falter. In September, reports that China would stop exchange trading of cryptocurrency caused the electronic coin to drop 40 percent in one month. But for every trough was a summit that went in another direction, keeping Bitcoin on its momentous course.
It’s not clear what’s causing this newest price drop but it seems to be the same story as before. A report published yesterday by Bloomberg said China was clamping down on online platforms and mobile programs that offered cryptocurrency trading services. China is also reportedly driving out Bitcoin miners, a group estimated to produce two-thirds of the planet’s Bitcoin supply. A leaked memo says Bitcoin miners should create an “orderly exit” from the country as they are using too many of its resources.
South Korea, another large cryptocurrency marketplace, is also contemplating stricter regulation. Finance Minister Kim Dong-yeon told Korean radio channel TBS that banning digital currency trading in the country was a “reside alternative. ”
“The finance minister made it obvious they’re definitely considering banning crypto trading — and it’s probably the third-largest marketplace,” Neil Wilson, a senior market analyst in ETX Capital, told Bloomberg. “The news is hitting costs and wider sentiment, and it follows China’s proceed to shutter mines. ”
Many cryptocurrencies, including Bitcoin, appear to be slowly regaining their footing, implying today’s autumn is merely one more track on the rollercoaster, not the bubble some critics think is ready to explode.