As soon as you start investing in cryptocurrency, you should be aware of the fact you’re betting on some very volatile assets and expect even the worst about this.
According to Fortune, the news that Google will ban any cryptocurrency-related adds, as well as the International Monetary Fund’s recommendation to increase regulations, the price of some of the most important coins on the market went down.
Top coins and not only were on red today
Bitcoin, Ethereum, Ripple, as well as many others, continued their slide today, wiping out a total of $499.2 billion of the market. And there aren’t any signs of recovery right now.
However, all these loses for cryptocurrencies are notably not ever since the end of December, when Bitcoin broke the ultimate record and traded even for $20,000 on some exchanges. Also, we should mention that the almost-$500 billion loss is based on the moment when all cryptocurrencies tracked right now reached an all-time high in valuation.
As expected, all smaller coins – also known as alt-currencies – have basically followed Bitcoin’s rhythm for a while. As for the biggest of cryptocurrencies, in terms of market cap, it would need a lot of time until it becomes stable.
“When sentiment is this weak, the market is increasingly ‘fire, ready, aim’—meaning, any headline today is likely to trigger selling,” wrote Fundstrat Global Advisors managing partner Thomas Lee.
Over the past 24 hours, the price of Bitcoin reached and surpassed $8,000, while Ethereum dropped 9% below $600, and Ripple fell to 68 cents, falling with around 8% during the same period.
Bitcoin could drop even lower, influencing the market
Analysts aren’t that confident in cryptocurrencies’ future at this very moment. According to their calculations, Bitcoin’s valuation could shed an additional $37 billion soon enough, reaching about $99 billion in market capitalization.
These values are based on technical analysis, coming from a team led by technical Strategist Robert Sluymer, who believes that on short-term Bitcoin could drop below $6,000. But will investors will take advantage of this and expect for an eventual rise of cryptocurrencies? Only time can tell right now.