On Sunday Bitcoin broke below $4,000 to extend its crash in 2018 to within striking distance of its worst bear markets. The top crypto coin lost as much as 17 percent on Monday to trade at $3,523 meaning it had lost over 80 percent from its December 2017 peak of almost $20,000. Also, the other top ten crypto coins registered significant losses with Monero losing as much as 21 percent. However, the scary thing is that still there is no sign to suggest the Bitcoin sell-off is over.
Still, the current Bitcoin sell-off isn’t the worst in history
The ongoing collapse that began on Nov.15 after the BCH hard fork means BTC is on track to match the 93 percent plunge it experienced back in 2011. And also the 84 percent rout from 2013 to 2015 after the collapse of Mt. Gox cryptocurrency exchange.
In dollar terms, the market damage has even been worse this time around. According to data from coinmarketcap.com, cryptocurrencies have lost more than $700 billion in value from the January peak.
Speaking to Bloomberg, Craig Erlam, a senior market analyst at Oanda Corp. a securities firm based in London said:
“There’s an element of almost shock: there’s nothing to suggest the sell-off is over. This was a market primarily driven by sentiment since last year, and it’s since been completely destroyed.”
However, some believers are betting that demand from institutional investors will help stabilize the prices. Many big money managers have opted to stay on the sidelines during this Bitcoin sell-off due to concerns over exchange security, regulatory risk, and market manipulation.
Ryan Rabaglia, the head trader at OSL, a crypto dealing firm is of the opinion that the sell-off is “really testing the faith of a few key players.”
He goes on to add:
“For this next push, we are going to need that institutional money to come in finally. To lend that support and help with growth.”
Are we likely to see the Bitcoin sell-off come to an end any time soon? Share your thoughts in the comment section below.