It looks like the bubble finally burst. Over the past 24 hours, Bitcoin managed to fell below $10,000 for the first time since November, as the crash of cryptocurrencies continued.
In this very moment, the world’s largest crypto coin is trading at $9,952, but earlier in the day it was even lower, reaching $9,199.59.
The market cap of all coins was seriously affected
The last time Bitcoin was trading for such a low price was on November 30, before its ridiculous growth spree, which ended with the coin soaring to a record high of $19,343 in December. However, ever since then, the coin has been on a constant decline. Currently, it is down with around 50 percent, compared to its all-time high.
Investors were definitely scared by this decline so they sold rapidly, as more than $30 billion was lost from the cryptocurrency’s overall market cap.
In the meantime, Bitcoin’s downfall led to the same fate for other top cryptocurrencies, like Ethereum or Ripple, the second and third-biggest digital assets. Specifically, Ethereum was trading at $791.97 per coin earlier in the day, while Ripple fell with almost 34 percent, reaching a low of 91 cents.
As you probably know, Cryptocurrencies started to sell off after a declaration made by South Korea’s Finance Minister, Kim Dong-yeon, went viral. The politician declared that the government is strongly considering a ban on crypto exchanges.
These fluctuations are considered normal by cryptocurrency analysts
The action we’re seeing may seem dramatic but is really quite normal for this market,” said Mati Greenspan, senior market analyst at eToro, for CNBC. “All in all, this drop has brought us back to the prices that were traded about a month ago for most coins.”
Mr. Greenspan also added that South Korean investors, as well as those from Japan, pay an additional fee of 20 percent per coin, but today, they appeared to be falling.
“The premiums that were being paid by Japanese and South Korean crypto traders is also coming down, so that’s a good sign as well,” he added.
China is also considering banning the cryptocurrency market, as authorities are planning to block domestic access to cryptocurrency platforms allowing centralized trading, no matter if they’re China-based or not.