While Bitcoin bites the dust, the cryptocurrencies lose $ 700 billion in the worst weekly drop since January

This is the worst weekly collapse since the crypto-mania reached its peak at the beginning of January. (Reuters)

The great cryptocurrency incident of 2018 is heading for its worst week yet. Bitcoin rose to $ 4,000 and most of its peers fell on Friday, extending the decline of the Crypto Galaxy Bloomberg Index from 16 to 23 percent. This is the worst weekly collapse since the crypto-mania reached its peak at the beginning of January.

After an epic rally last year that has overcome many of the most famous bubbles in history, the cryptocurrencies are mired in a route of almost 700 billion dollars that shows few signs of decrease. Many of the concerns that led to the withdrawal of 2018 – including greater regulatory control, internal community struggles and the exchange of snakes – have only intensified this week. Even after losses of over 70% for most of the virtual currencies, Stephen Innes of Oanda Corp. has not yet seen clear evidence of a capitulation that would have marked a market fund.

"There's still a lot of people in this game," he told the phone from Singapore Innes, head of trading for the Asia Pacific in Oanda. If Bitcoin "collapses, if we start to see a run towards $ 3000, this thing will be a monster." People will run to the exits. "

Innes said his base case prediction is that Bitcoin has a trade between $ 3,500 and $ 6,500 in the short term, with a potential reduction to $ 2,500 by January.

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The largest cryptocurrency withdrew to 7.6% on Friday, before reducing losses to 3.2% at 6:36 in New York, according to Bloomberg's composite price. At $ 4.285, trading is close to the lowest closing level since October 2017. The rivals Ether, XRP and Litecoin have all declined by at least 4%. The market value of all cryptocurrencies tracked by CoinMarketCap.com decreased to $ 140 billion, down from around $ 835 billion at the January market peak.

The biggest losses on the route: individual investors who peaked while prices peaked and companies like Nvidia Corp. that provided the cryptographic ecosystem. The Californian chip maker lost nearly half of its value from the beginning of October, as demand for its cryptocurrency chips has plummeted and its gaming division has disappointed.

The economic impact of the collapse of the collapse has so far been limited, in part because most of the major institutional banks and monetary managers have little or no exposure to virtual currencies. For most investors, the recent decline in equity markets was probably much more important: the $ 700 billion fall in digital assets since January compares with $ 1.3 trillion lost from the global stock market value just this week.

While some crypts have argued that Bitcoin and its peers will act as havens from the turmoil in traditional financial markets, the losses of this year have undercover these claims. Gold, a traditional hideaway for investors, has risen in the last two weeks when virtual currencies have plummeted.

"I do not think the coins will be as attractive as some of the other works crossed," Innes said. "Gold prices will rise significantly higher and there is an inverse relationship that we are starting to see with gold and coins".