Bitcoin fell below $ 6,000 and dozens of small digital tokens have plummeted while this month's selloff in criptovalute has shown few signs of slowing down.
The largest digital currency fell 6.2 percent to $ 4,887 as of 3:07 pm in Hong Kong, the lowest level since June, according to Bloomberg compound prices. Ether has risen up to 13%, while all over 100 major cryptocurrencies tracked by Coinmarketcap.com have experienced declines in the last 24 hours. The total market capitalization of virtual currencies fell to $ 192 billion from a peak of about $ 835 billion in January, obliterating most of the gains observed during speculative mania at the end of 2017.
"Most cryptocurrencies are has been overvalued for a long time, "said Samson Mow, Chief Strategy Officer at Blockchain Blockstream Corp." It is difficult to put this move into action on a particular factor, but it seems the opposite of last year when money accumulated when people felt FOMO, now they are accumulating when they feel panic ".
While cryptocurrencies gathered in July with the hope that a fund traded in Bitcoin would attract new investors, US regulators have not yet signed more proposals for such a product. The disappointment coincided with the growing concern that entrepreneurs who have raised funds encrypted through the first coin offerings are now accumulating holdings such as Ether, the Ethereum blockchain token that is a popular platform for encryption projects.
History in today's market is the tremendous weakness of Ethereum, "said Timothy Tam, managing director of CoinFi, a cryptocurrency data analysis company, in a telephone interview." Bitcoin held relatively well compared to Ethereum. It is still rather weak compared to the US dollar. "
At the height of the Ether rally last year, digital money included 32% of the cryptocurrency market capitalization, reaching a significant distance from 39% of Bitcoin. 14 percent, while Bitcoin accounts for 54 percent after falling less quickly than its younger peers, according to Coinmarketcap.com.
"ICOs who have raised a lot of money feel a lot of pain" as their cryptographic holdings lose value, said Tam.
Ether lost 39% this month, while Bitcoin lost about 22%.
The recent turbulence in the global market, fueled by Turkey's currency crisis, is unlikely to be affecting cryptocurrencies James Quinn, head of the Kenetic markets, a blockchain company with investment and advisory services.
"The correlations have historically been extremely low between cryptocurrencies and three asset classes, "he said in a telephone interview from Hong Kong. "This is one of the reasons why there is interest in this space and why people want to make an allocation in this space."
However, anyone who expects Bitcoin to provide shelter for the turmoil in global markets will have been disappointed. The cryptocurrency slip against the dollar this month is almost equal to that of 25% of the Turkish lira.