The price charts resemble battlefields, with red arrows raining down relentlessly. Since the start of the year, the price of bitcoin has fallen by more than 50%, cutting more than $100 billion from its market capitalization.
At the time of writing, Satoshi’s digital gold trades for around $6,400 per coin, a far cry from the $100,000 that some analysts predicted at the beginning of the year. For instance, since recording an all-time high of more than $1,400 in January 2018, ether has similarly plunged.
In the past month alone, ether has shed nearly $11 billion in market cap (that’s equivalent to 55,000 Lamborghini Huracáns). Ripple’s XRP, which once hovered near $4 per unit, has also succumbed to gravity, crashing some 90% from its January peak.
All things considered, it has been a bloodbath. It’s hard to pinpoint a single reason for the declines, and some coins are already bouncing back from the depths plunged earlier this week.
Here are a few of the factors market watchers believe may be contributing to the crypto carnage. Some have posited that blockchain and cryptocurrency projects might be converting their ether reserves into fiat currencies to meet financial obligations. Read more from qz.com…
thumbnail courtesy of qz.com