Sell-off mania results in over 50% whitewash for bitcoins

Last Updated: Fri, Feb 02, 2018 19:29 hrs
Bitcoin (Image Courtesy: theconversation.com)

Popular cryptocurrency- Bitcoin has continued its week long slumped and continued to bleed on Friday by another 12%. Bitcoin has traded to a two month low of $7,910, according to data available from the Luxembourg-based Bitstamp exchange. The price-change has eroded its market-cap.

Bitcoin was already down by over 30 percent this week, and the additional 12% has eroded its market valuation by over 30%.

Highlights:

  • Slides below $8000. The low on Friday was $7920 per coin
  • Market-cap sinks over 50%.

Indian Finance Minister Arun Jaitley's comments on cryptocurrencies, fears of crackdown in Asian markets such as South Korea and Japan, and Facebook's new policy of banning cryptocurrency advertising on its platform are reasons that contributed to the steep decline. At a price below $8,000, the bitcoin may well be heading into its worst week since 2013. Investors have already started scrambling on fear of regulatory crackdown.

The slump in bitcoin's valuation has eroded its market-capital from $385 billion at the start of January to $160 billion by end of January. The market value of cryptocurrencies is calculated by multiplying the number of digital coins in existence by their price, although many question whether that is the right way to value them.

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