Bitcoin, the largest cryptocurrency in terms of market capitalisation, has dropped 4.2% in the last 11 hours as the entire cryptocurrency market lost a whopping $13 billion in terms of market capitalisation.
Bitcoin, a coin that has shown incredible stability for several months now, has suddenly plunged over 4.2% in the last 24 hours, dragging along other altcoins in the market. The market capitalisation now stands at £152 billion.
Bitcoin loses almost $300 in hours
Earlier today, bitcoin was trading at $6,562 ($4,960), a price it has hovered around for the last few weeks. It suddenly plunged to £4,772 ($6,318), losing around £250 ($330) in just a few moments, and continued to drop until eventually stabilising at the current price level of £4,740 ($6,270).
Other top cryptocurrencies also take a hit
It appears bitcoin wasn’t the only coin that took a hit, considering that most top cryptocurrencies also went in the red, with a good number of them dropping double-digit percentages in the last 24 hours.
Ethereum (ETH), Ripple/XRP (XRP), and Bitcoin Cash (BCH) were some of the biggest losers among the top cryptocurrencies as their prices dropped 11.48%, 12.76%, and 11.82% in the last 24 hours respectively.
Price movements could be triggered by the US stock sell-off
The recent price movements of cryptocurrencies have been attributed to the stock sell-off currently ongoing in global markets, which is the biggest since February 2018. Speaking about the price drop of digital assets and the plunging of stock prices, David Thomas, the director of GlobalBlock, a Mayfair-based cryptocurrency broker, told The Independent that:
Having seen global stock markets take a battering in the last 24 hours on trade fears and rising interest rates as well as the price of gold and the VIX Volatility Index heading higher, it is strange that we now see the crypto market also following suit.
He also added:
There was a growing feeling that bitcoin was a ‘digital gold’ asset and as such should weather such wider storms as equity market volatility. The fact that this hasn’t happened is interesting as it suggests to us that more and more seasoned investors with wider portfolios are getting into cryptocurrencies and are using similar equity strategies to manage their positions.