The Global Cryptocurrency Market Loses $38 Billion
Many experts have tried to predict the value swings of the global cryptocurrency market but no one was able to predict what happened this past weekend. Cryptocurrency reached a new milestone when Bitcoin’s priced reached $5,000. However, things took a sudden turn when the market started plummeting and lost 20% as a whole in just only 48 hours. This percentage means that cryptocurrency’s total worth declined down to $142 billion from $180 billion.
$38 Billion Downswing
We think it’s safe to say that being a digital coin trader is not for the faint of heart. Although, we need to mention that even though this market crash caused many people to lose large amounts of money, Bitcoin’s value is still four times what it used to be a couple of months ago. In fact, many experts are reporting that Bitcoin’s huge price spike is what caused the market to crash. The most popular theory states that the market became very hot way too soon since everyone started investing in Bitcoin once it reached the $5,000 milestone.
China Bans ICOs
Even though Bitcoin’s value spike certainly affected the market, China’s ban on ICOs is another major factor which caused the market to crash. Yesterday (September 4th), China let the entire world that it no longer allows Chinese organizations or individuals to use ICOs. Sadly, things don’t end there since China also announced that every ICO or entity that was involved with ICOs needs to start refunding everything to investors.
NEO (AntShares) Declines in Value
As an example of the consequences following China’s ban, the Chinese based ICO/cryptocurrency known as NEO (aka AntShares) nosedived 50% in value in only two days. Therefore, digital coin traders should put some thought into cashing out their cryptocurrency since the market might crash again during the upcoming future.