The cryptocurrency bear market has plumbed a new 10-month low after Bitcoin's biggest rival has collapsed and US regulators have suspended the trade in two digitally-linked securities.
Ether, the second largest virtual currency, lost 8.9% from its level at 5.00pm Friday to New York, according to Bloomberg's composite price. Bitcoin lost 2.1%, while the digital asset market capitalization tracked by CoinMarketCap.com dropped to $ 197 billion – down about $ 640 billion from its January peak.
Cryptocurrencies have declined for five of the past six weeks due to a wider adoption of digital resources will take longer than some had anticipated. This concern was highlighted during the weekend after the US Securities and Exchange Commission temporarily suspended trading in two cryptocurring stocks and Ethereum co-founder Vitalik Buterin told Bloomberg that the explosive growth in the blockchain industry probably have arrived and gone.
"The temporary suspension of these products has led to an initial instinctive reaction," said Ryan Rabaglia, head of trading at OSL of cryptocurrency companies in Hong Kong. "But in the end, it's just another obstacle to overcome for the market."
Cryptocurrencies remained under pressure on Monday despite reports that Citigroup (c) developed a new mechanism for investing in space. The US bank plans to act as an agent that issues so-called digital goods receipts, or DAR, to allow trading by proxy without the direct ownership of the underlying currencies, a person with knowledge of the said plans.
The Bloomberg Galaxy Crypto Index of the major virtual currencies fell 4.1% to 392.68 at 8:28 am in London, heading for its lowest end since mid-November. Ether dropped to $ 199.05 and Bitcoin slipped to $ 6.313.51.
Ether has crashed faster than Bitcoin in recent months due to the concern that the companies linked to the blockchain are collecting cryptocurrency n. 2. Many start-ups who have raised Ether from investors in their initial coin offer will eventually have to sell their holdings to cover expenses such as salaries and development costs.
"The rhetoric around the ICO continues to download their proceeds on the market remains valid," Rabaglia said. "It's hard to see how that storyline will go away anytime soon."