Bitcoin, Ethereum, Ripple in Recovery
The world’s most valuable cryptocurrency, bitcoin, lost over half its value since it smashed the $20,000 barrier in mid-December. The price of the cryptocurrency dropped to $9,555 at 15:00 GMT on Wednesday but has bounced backto trade over $11,000 this morning.
The mini cash was sparked by 3 things, BitConnect’s collapse, associated parties dumping and speculators hammering BTC believing the BitConnect incident was a major event, in fact it was just a blip, serous players knew BitConnect was a scam from day 1 and avoided the bogus lending site.
The China Syndrome
On Tuesday, an official from the People’s Bank of China said the country’s centralized virtual currency trade needs to end, Reuters reported, the individual making the claim was not a person with authority to make any laws, he was just another attention seeking politician making noise.
National and local authorities should ban venues that provide centralized trading of virtual currencies, including the largest one, bitcoin, PBOC Vice Governor Pan Gongsheng was quoted as saying.
“The financial work conference clearly called for limiting ‘innovations’ that deviate from the need of the real economy and escape regulation,” Pan said, according to a memo quoted by Reuters.
There have been reports that an increasing number of people were taking out mortgages to invest in bitcoin when it peaked at $20,000.
The collective market capitalization of all cryptocurrencies has dropped by more than $200 billion since Tuesday.
If China does ban Bitcoin? Big deal, it will not kill the market, it will create a short burst of hysterical selling and then Bitcoin will continue on upwards.
— Live Trading News (@Livetradingnews) January 18, 2018
Ethereum fell to under $800 but has now recovered and is trading back over $1000.
Over the last couple of months, the Ethereum network has reported record activity, peaking at over one million transactions a day. This growth has come at a price in the form of slow or backlogged transactions, causing fees to reach record highs and ICO participants to miss out on token sales after failing to push their ether through in time. On Wednesday January 17, two exchanges reported ethereum withdrawal issues that were affecting users.
Wednesday was the second consecutive day of a giant cryptocurrency price slump, with some tokens faring better than others. One of the major losses came from Ripple, the finance industry-focused network, which saw the value of its XRP tokens slump by 23.93 percent over a 24 hour period.
Ripple fell below a dollar but quickly rallied back over that level.
G-BiT ignored the dive all together and continued on it’s growth path.