It is no news that the Cryptocurrency market is facing a tough time, burdening the bear market further the sudden plunge on Thursday has wiped off almost $13 billion of value in a matter of hours. Major Cryptocurrencies such as Bitcoin, XRP, and Ethereum has taken a massive fall that has erased big chunks of value form the entire cryptocurrency market in just three hours.
At around 10:23 a.m. HK/SIN, bitcoin fell down nearly 5 percent to $6,303 and both XRP and ethereum tanked over 10 percent, according to data from Coinmarketcap.com. The subsequent fall of the altcoins, following a dip in bitcoin, is definitely not an unprecedented event.
According to a report by CNBC, the recent drop comes amidst the fresh set of warning release by the International Monetary Fund about the rapid growth of digital coins and the potential threat to the economy. Their recent report states:
“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”
Contrary to the hopes of cryptocurrency enthusiasts, 2012 hasn’t warmed up the regulators to the idea of professionalizing the trading of digital assets via new financial products like exchange-traded funds. Although the U.S. Securities and Exchange Commission(SEC) is reviewing its decision of rejecting several ETFs, it did reject them in the first place citing regulatory issues as the reason.
Countries such as China and India have also employed a crackdown on the cryptocurrencies. To support the apprehension of the regulator’s many high-profile hacks on cryptocurrency exchanges as well as a number of scams have surfaced over the passage of the year,
All these aforementioned factors have taken a toll on bitcoin, XRP, and ethereum and have hindered them from recovering to the record highs seen toward the end of 2017 and beginning of this year. According to the data, on Thursday, bitcoin was more than 68 percent off of its record high of $19,783.21, which it hit on Dec. 17 of last year.