Bitcoin (BTC) Down to 8-Week Lows
Bitcoin dropped to an 8-week low Tuesday, while Ethereum, the 2nd-largest cryptocurrency in terms of market value, sank to a more than 1-year lows, as they continued their Bearish trend.
The Turkish crisis has dampened risk appetite in recent sessions, spurring a sell-off in emerging market currencies and stocks and prompting inflows to safe-haven assets such as the dollar and U.S. Treasuries.
Currently, Bitcoin is trading at 6,083.165, +113.17, or +1.90%, as of 11:26p BST, the market is open
YTD Bitcoin has retraced 57%, after soaring more than 1,300% in Y 2017.
Ethereum plunged nearly 9% to 258.45 on Bitstamp, falling to a more than 1-year low of 250.54. According to crypto data tracker coinmarketcap.com, the third-largest cryptocurrency, Ripple, fell 13.4% to 25c.
“What began earlier this week as a rout in the Turkish lira has quickly spread throughout all markets and now it seems to be affecting the cryptos as well,” said a senior market analyst at eToro.
The total market capitalization for cryptocurrencies sank to $191.4-B, the lowest since early November last year, coinmarketcap.com data showed.
Bitcoin has held up pretty well amid the sell-off in the cryptocurrency market, 1 analysts said. As a percentage of market capitalization, Bitcoin’s share rose to 54.5%, suggesting that investors were willing to hold the more widely held and well-capitalized digital currencies.
During the heady days of the cryptocurrency boom in late Y 2017 and January this year, Bitcoin’s share fell to 32%.
The cryptocurrency market has been stung by several decisions by the US Securities and Exchange Commission (SEC) on exchange-traded funds.
Late last month, the SEC stood by its decision to block the ETF application of Tyler and Cameron Winklevoss, founders of crypto exchange Gemini Trust Co LLC.
Early this month, the SEC delayed a decision on a proposed bitcoin ETF submitted by money management firm VanEck and crypto startup SolidX.
“Looking ahead, I don’t think we’re at the end of the cycle just yet and I can see bitcoin and other cryptocurrencies continuing to fall before a meaningful return back up.”