The total market capitalisation of the cryptocurrency market has fallen just over 50 percent since January.
This comes after a day of trading which saw Bitcoin prices falling below $9 000 to a low of $8 666,52 according to data from CoinMarketCap. The currency is currently down 14.97% compared to prices 24 hours ago.
The downward trend seems to have spread across the market with all currencies currently in the red.
Ethereum is down 19%, Ripple’s worth is back down to below $1 and even Bitcoin Cash is worth 20.71% less than 24 hours ago.
Collectively the global cryptocurrency market capitalisation is now worth $400 billion compared to highs of $800 billion a month ago.
The big question on everybody’s lips is likely “why is this happening.”
Taking a look at what analysts are saying it appears as if there are a number of factors at play here.
Perhaps the largest of these is talks of regulation particularly in India. In a report by Forbes India’s Finance Minister, Arun Jaitley said the following during a budget speech.
“The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. The Government will explore use of block chain technology proactively for ushering in digital economy.”
This in addition to a theft at a Coincheck earlier this week which saw some $500 million stolen from users is likely to have investors running scared.
Indeed TechCrunch suggests that many investors may be investing in fiat currency rather than altcoins such as Litecoin or Monero as they have in the past when the big currencies such as Bitcoin slipped.
Next week’s Senate Banking Committee hearings on cryptocurrency in the US may also have traders running scared.
So with all this danger about perhaps now wasn’t the best time for Samsung to dip its toes into the crypto market. That said, as we’ve seen time and time again anything can happen at anytime when it comes to magic internet money.[Image – CC 0 Pixabay]