Cryptocurrency Market Value Drops by $20 Billion Over the Weekend
The global cryptocurrency market tends to be quite volatile but this last weekend, things just went to the next level. The market recently underwent a correction of around 11%. This is quite important since the 11% correction translates to $20 billion. However, it doesn’t end here because things can still get worse. China wants to ban “initial coin offerings” which will certainly make some waves in the cryptocurrency market.
Dropping $20 Billion in Value
The combined value of all the 886 digital currencies which are tracked by “CoinMarketCap.com” went down from $180 on Saturday to $160 billion on Monday morning. The reason why this happened so quickly is because Bitcoin hit the $5,000 milestone during the weekend and everyone started withdrawing cash. Moreover, the CEO of CryptoCompare stated the following: “Bitcoin touched $5,000 on some exchanges and with the psychological level met the market panicked with traders taking profits off the table”. This eventually led to Bitcoin’s value to fall down to $4,400.
The Worse Has Yet to Come
As previously mentioned, China wants to announce a ban on “initial coin offerings”. This will force traders to start withdrawing money into their bank accounts which will more than likely affect cryptocurrency’s value. Right now, Ethereum price went down 5% in comparison with the dollar bringing it to $332.9450, while Bitcoin dropped by 3% which changed its value back to $4,477.7651.
Regarding China’s upcoming cryptocurrency ban, ICOs (initial coin offerings) will suffer the most. ICOs are basically startups which issue their own digital coins in order to raise money. These are what helped the cryptocurrency market grow so much all throughout 2017 and their downfall is surely going to affect it. In addition, ICOs mainly use Ethereum cryptocurrency and its price will surely go down as well.