Bitcoin (BTC) Dives Below $5,000
The fall in cryptocurrencies has accelerated, with Bitcoin piercing the $5,000 mark for the 1st time since October 2017 on speculation that increased regulatory scrutiny will prompt issuers of ICOs to liquidate holdings.
Bitcoin declined as much as 9.1% to $4,958, falling for an 8th day running in what is the longest string of losses on record for the 10-year-old digital currency.
Alternative coins dove deeper
- Ether dove as much as 13%
- Litecoin dove as much as 14%.
- XRP, the token associated with Ripple, was the lone gainer among major digital currencies.
Last Friday, the SEC announced its 1st civil penalties against two cryptocurrency companies that did not register their initial coin offerings as securities.
Airfox and Paragon Coin Inc. will each have to pay $250,000 in penalties to compensate investors, and will also have to register their digital tokens as securities.
The selloff is related to enforcement, which is almost certainly underway. Projects are being made to return investor money, which, after having spent a lot money marketing their $100-M ICO on a lavish party-filled road-show that was the norm for this vintage of ICOs, will be tough.
Speculation that the sell-off was triggered by the SEC ruling may be overblown. Many of the ICOs done have already drained their wallets and likely converted their cryptocurrency into fiat, paper, currency according to the data.
Volatility has returned to cryptocurrencies
The largest tokens shedding billions in market value since the hard fork of Bitcoin Cash debuted last week. That came as 2 software-development factions failed to agree on a way to upgrade the offshoot of the original Bitcoin, leading to a computing power arms race.
The cryptocurrency industry has now lost more than $660-B in value from a January highs, according to the data. Bitcoin is down more than 70% from its December 2017 high, the data show.
Bitcoin bulls may be able to take heart in some technicals.
Bitcoin is flashing oversold for the 1st time since August, and its most oversold mark this year. In addition, it is testing its 23.6% 5-year look back Fibo mark of $4,727 next support.
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