Cryptocurrencies Lost Half a Trillion Dollars – Where is the Support Level?

Crypto lost
No one had expected the ruthless drop in cryptocurrency prices one month ago when the total market capitalization was moving above $850 billion; crypto lost almost a trillion dollars since. The cryptocurrency crash furthered since the start of this week; digital currencies plummeted at a double-digital rate in Monday trading and pessimistic market sentiments hammered cryptocurrencies in early Asian trade today. Consequently, the volatility has wiped off more than half a trillion dollars of value from the cryptocurrency markets in the last month alone. Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and the majority of top ten currencies plunged close to 20% in early Asian trade today. Bitcoin briefly traded around $6,000 level before rising back to $7,000. The selloff has vanished 70% of bitcoin’s value from all-time-high of $19,000 it hit in mid-December. The crash has reduced its market capitalization to $107 from an all-time high of $333 billion. Nevertheless, Bitcoin continues to dominate the total market capitalization with its share of 36%. Ethereum and Ripple are both falling at a sharp pace, as regulatory actions and lower trading volume from the buy-side have dazed trader’s confidence in crypto-currencies. At the top of a selloff on Tuesday:
  •         Ethereum dipped by 21% to $612, lost half of its value from the peak of $1,255.89 it hit on 9 January.
  •         Ripple, the third largest cryptocurrency, off 80% from all-time high of $3.81
  •         After peaking at $4,091.70 on December 20, Bitcoin Cash (BCH) pulled back to $766.03
>>Ethereum Price Analysis - A New Resistance Level For The Coin Where is the Support Level? Investors are struggling to find the support level. Prices are falling at higher than expected rate over the last week. Negative reports have encircled crypto traders, and they are responding to each report. The crash worsened last week when Indian finance minister declared the countries plan to eliminate digital currencies. Big banks have also banned their customers from buying bitcoin using credit cards. Traders are also blaming Tether and Bitfinex for lower confidence in crypto markets, as investigations are going on for artificially propping up bitcoin prices. The head of the Bank for International Settlements, Agustín Carstens, said, “bitcoin had become a combination of  a bubble, a Ponzi scheme and an environmental disaster that threatened to undermine public trust in central banks.” Although trading digital currencies are still legal in U.K. and France, both countries have warned their citizens from investments in cryptocurrency markets. Meanwhile, they are preparing regulatory requirements for crypto traders.  Therefore, it’s quite difficult to predict where cryptocurrency prices will stand by the end of the next month. Featured Image: Twitter        

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