Cryptocurrency 'bloodbath' as Bitcoin falls 30% in a week

Cryptocurrency 'bloodbath' as Bitcoin falls 30% in a week

A number of analysts are predicting further falls for Bitcoin, which keeps hitting new lows. However, the cryptocurrency market is experiencing yet another collapse, reflective of the recent fall that saw the collective market cap shave off $23 billion and drop to $160 billion - its lowest since late October previous year.

According to the data on CoinMarketCap, $25 billion has been wiped out from the market in a 24-hour period.

Bitcoin hit $10,000 at the end of November a year ago and was worth about $20,000 before Christmas, driven primarily by retail speculators. Ripple's XRP currency, however, held up relatively well.

Innes said the disruption over the new bitcoin cash fork has created too much "noise" that triggered a "when in doubt get out" cause and effect.

A day before the Bitcoin Cash hard fork, the opposing parties have sent threats to each other, stating that they will start what is known as "the hash wars", rerouting their hashrate from BTC to BCH. The difference in market cap between ETH and XRP is now over $4 billion.

On Friday, the SEC announced its first civil penalties against two cryptocurrency companies that didn't register their initial coin offerings as securities.

XRP, now the top altcoin in the market, was the least affected major crypto on Tuesday. During the last week, Bitcoin Cash ABC [IOU] has traded 31.8% lower against the dollar.

At current rates, the pair is around halfway to the "bottom" as predicted multiple times by celebrated trading guru Tone Vays, who has forecast $3000 as a target to hit before markets reversed.

"The selloff is related to enforcement, which is nearly certainly underway", said Justin Litchfield, chief technology officer at ProChain Capital.

Bitcoin's short comings are Bitcoin Cash's failures in the last week, with many having expected Bitcoin to face the 51% attack and not Bitcoin Cash that had mapped out a twice yearly upgrade to position itself as the most viable alternative to fiat money.

Something which has to be noted in any such discussion is that the profits gained from such mining - or loss thereof - would at present be on paper only, as neither BCH nor BSV has exactly the most liquid market at this time.

"...it seems likely that a lot of what's going on now is ICOs trying to liquidate all their cryptocurrency for cash to make off with the goods before the SEC comes down on them", he said.

Neil Wilson, chief market analyst at Markets.com, told The Guardian: "The crypto bloodbath continues".

"It's hardly the spirit in which many would want crypto to be used but, I'm afraid, it is what it is, and the very nature of trading means we will see this cycle over and over again". Bitcoin could well climb back towards $6,000.00, when it does, the rest of the markets should continue. Bitcoin was trading above $6,000, but suddenly fell to $5,530.

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