Cryptocurrency markets saw a sudden drop in value as $18 billion is wiped off the market within 24 hours. Cryptocurrency isn’t the only market that has crashed, but the entire US stock market is down by 4%. Tech stocks have taken the biggest hit. One of the possible reason for sudden tech stock drop is due to trade war with China.
The cryptocurrency markets too have been hit with the crash. The cryptocurrency market is currently valued at $201 billion. According to CNBC, IMF’s statement on cryptocurrency could also be a potential reason for a sudden drop. IMF warned,
“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,”
Although the sudden drop in price has hit the altcoins hard, Bitcoin price wasn’t as severely affected. Bitcoin was only down by 4.3%. Bitcoin also saw an increase in market share, as the share increased by 54% from 51%. Bitcoin also has already started showing signs of recovery.
Ripple (XRP) is the biggest loser from the Top 10 cryptocurrencies, losing 13.53%. IOTA, Bitcoin Cash, and Tron all dropped by a little more than 12%. Ethereum, Stellar, NEO and VeChain all are down by 11%. EOS and Monero all dropped by a single digit with around 9% and 6% respectively.
December 2018 bull run
As a general trend, cryptocurrencies market have a stellar last quarter. But analyst predicts that this might not be the case this year. Just a week back, famous cryptocurrency investor Mike Novogratz, publicly said that Bitcoin price probably won’t cross $9,000 this year.
Mike Novogratz isn’t the only one that thinks so. Many people in Facebook and Reddit communities share a similar belief. Vitalik Buterin, the founder of Ethereum, said in a Bloomberg interview that Cryptocurrency won’t see a thousand times growth anymore, but he later clarified by what he meant.
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