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Bitcoin and other digital currencies traded sharply lower on Tuesday, with bitcoins on the edge of the cession of the worst daily decline in three weeks.
The price of a single bitcoin
BTCUSD, -4.14%
was down 6%, surpassing a short-term trading range of $ 7,800- $ 8,200. The last time in Bitcoin went from $ 7,725.26, down 5.3% from Monday to 17:00. The eastern hour in Kraken's cryptic exchange, and is on track for the worst daily slide since July 10, when it fell 5.5%.
The move comes after the Nobel Prize-winning economist Paul Krugman said, in a New York Times editorial, there is a real possibility that the price of the bitcoin will collapse, saying that the digital currency does not solve any problem in the real world and compared to the current monetary system, it is inefficient.
"Instead of money created with the click of a mouse, we have money that needs to be extracted, created through calculations that require a lot of resources," wrote Krugman.
Read: A real collapse in bitcoin is a real possibility, says the Nobel laureate economist Krugman
The irrational exuberance in commerce is coming to an end
The volatile action of cryptocurrency prices in 2018 has caused some effort by investors, according to an asset management company. However, the Element Asset Management of Santa Monica, Calif., Said they believed that this behavior is coming to an end.
"The retail investor who was forced to change his decisions forever in response to the market has probably lost patience to continue making rational decisions, and this investor has probably entered a period of extreme decision-making. ", wrote Element's portfolio manager, Thejas Nalval, and Kevin Lu, director of quantitative research at the company.
"The long-term implications of this change of behavior can be theorized and discussed for months, but we choose to consider this fatigue as a possible signal that irrational exuberance is coming to an end and that Fundamentals of the market are now giving shape to a point that will see rational speculation drive price action in a more orderly manner ".
Read: Here is the case against the daily trading bitcoin
Read: These could be the 3 biggest obstacles to a bitcoin ETF
Altcoin stumbles; The Bitcoin domain close to 50%
Altcoin, or alternative coins to bitcoin, followed the bitcoin lead Tuesday. The general decline in cryptocurrencies pushed the value of all digital currencies to $ 277 billion, a minimum of 10 days.
Ether
ETHUSD, -1.94%
fell 4.7% to $ 432.33, Bitcoin Cash
BCHUSD, -4.28%
trading down 5.1%, to $ 770.60, Litecoin
LTCUSD, -3.37%
is down 5% to $ 78.26 and the Ripple XRP currency
XRPUSD, -7.44%
traded at 44 cents, down 2%.
Bitcoin futures ended Tuesday in red. The August contract of CME Group Inc.
BTCQ8, -5.72%
closed 4.6% to $ 7.730 and the comparable contract Cboe Global Markets Inc.
XBTQ8, -3.80%
ended the day at $ 7,710, down 4.8%.
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