Cryptocurrencies have collapsed for the second time in less than 24 hours, sinking to a minimum of nine months between concerns that the wider adoption of digital resources will take longer than expected.
Bitcoin, the largest cryptocurrency more than 9.8% and traded at $ 6,422 at 1:25 pm in Hong Kong, according to the Bloomberg composite price. The Bloomberg Galaxy Crypto Index, an indicator of the largest digital assets, has been trading near the lowest level since November 2017, with the fall of rival currencies Ripple, Ether and Litecoin.
The cryptocurrency bulls who were counting on a growing user base to drive up prices have been treated to a series of recent disappointments. Business Insider reported Wednesday that Goldman Sachs Group was withdrawing short-term plans to set up an encryption desk, while the ShapeShift trading platform announced on Tuesday that it will begin to ask users for personal information – a policy that could drive customers away who they value l & # 39; anonymity. The moves follow the decision of the US regulators last month to reject another round of proposals for funds exchanged with Bitcoin
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"Many of the hopes of retail investors for greater institutional presence were led by Goldman Sachs," Stephen Innes, manager of trading for the Asia Pacific in Oanda, said on the phone from Singapore . "This is just a negative sign, negative for liquidity."
While many banks and institutional investors are plunging their fingers into the world of cryptocurrencies, concerns about everything from recycling to market manipulation and unclear regulations have prevented widespread adoption. The market value of virtual currencies plotted by CoinMarketCap.com has plunged around 75% from its January peak to $ 204 billion.
The second key level to take into account for Bitcoin is $ 5,000, according to Mr Innes, who said a lower threshold decline may result in accelerating losses.