Bitcoin is trying to prove that cryptocurrencies make evaporate revenue as fast as they generate it.
According to historical pricing data from Coinmarketcap.com, its January slide hit USD46.1 billion off the $200 billion in market value created last year.
The decline is the hefty one-month loss in dollar terms in the short history of digital assets.
Stephen Innes, Head of Asia Pacific trading at Oanda Corporation said, “Once we make USD10,000, cryptocurrencies had used this Teflon persona of late that it is always going to find a base and go back up again.”
He added, “When we are discussing in the dimension of riskier assets, and something cut down 50% of its value, it tells me there’s going to be an extension lower.”
“But the sad thing is many people will be burned, as they will keep buying dips.”
Since arriving a peak of nearly USD20,000 in early December 2017 after the launch of futures contracts on regulated exchanges in the United States, some negative news have buffeted Bitcoin and combating crytocurrencies, with losses intensifying from the beginning of 2018.
A record USD500 million heist of alternative coin at Japanese exchange Coincheck Inc. on 26 January increased the pressure on regulators to study business practices within the largely unregulated industry, while authorities in trading placed South Korea continue to discuss more crucial methods including a restriction on such exchanges.
Stephen Innes observes the cryptocurrency falling further in between the range of USD5,000 to USD6,000 before ultimately recovering to USD10,000 to USD15,000.
He then said, “The path will almost surely be bumpy, global authorities are likely going to raise their scrutiny of the crytocurrency industry from here on.”