Bitcoin Loses Billions After Hitting $5000 Milestone - Sundiata Tech

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Tuesday, September 5, 2017

Bitcoin Loses Billions After Hitting $5000 Milestone



Bitcoin once again proved its high volatility after a weekend of crashing records. First it set the buzz with a $5,013 all time high on Saturday only to come crashing below $4,400 by Sunday, and continuing on Monday following panic trade off.

As at press time, the CoinDesk’s Bitcoin Price Index showed a slight drop to $4,437 (about 5 percent) while the Coinmarketcap recorded $4,330, a dip of 3.52 percent in one day. Its market capitalisation also hit a low, dropping off about $6.5 billion to $71.9 billion

The panic selling also impacted the top twenty cryptocurrencies.

Ether which trades on the Ethereum platform also dropped 12.17 percent to $296. It is over $90 decrease from last week, when it reached as high as $390. Its current market capitalisation stands at $28.7 billion.

To be sure, by Monday, the total market capitalisation for cryptocurrencies declined by N16 billion from $164 billion it was on Saturday.

News.Bitcoin.com noted that technical indicators like the Relative Strength Index (RSI) are starting to head south as the bulls appear exhausted.

“Overall bitcoiners are pretty chipper, to say the least as the fall in value is just another day in bitcoin-land. The quarrelling about SegWit2x and the competition with bitcoin cash fork is still in full form, but people seem a bit calmer now watching for technical performance to trump internet chatter,” said an analyst at bitcoin.com.

However, there are indications that a ban by Chinese central bank may have upset the bears in the bitcoin market.

The People’s Bank of China issued an official ban on all initial coin offering (ICOs) that has “seriously disrupted the economic and financial order.”

ICOs which allows start-ups to raise funds through selling of new cryptocurrencies in return for cash, has gained popularity across the globe including the People’s Republic of China.

According to the central bank’s directive, all token sales are forbidden in the country, and companies which have already completed ICOs are to return all investor funds. Analysts see the later part of the directive as “likely impossible” since most of the funds may have already been spent.

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