The dive saw market capitalisation of so-called cryptocurrencies dive around US$40 billion over 24 hours, specialist market media reported. The sudden drop in cryptocurrency prices has seen the market lose the gains it has gathered over the past few weeks.
The price of bitcoin, ripple, litecoin, ethereum and other cryptocurrencies are falling amid fears an increasing number of lenders and finance bodies are shunning them. The only coin making a comeback within the past 24hours is ripple (XRP), which is up by nearly 2%, trading at $0.3 after hitting $0.27 at the early hours of September 6. News related to institutional traders tends to have some impact on bitcoin's price - indicating that there is an appetite for institutional involvement in the cryptocurrency world.
Some analysts have suggested panic selling as the major contributing factor, though the major reason is not entirely clear.
TOO RISKY. According to Business Insider's sources, Goldman Sachs had hoped that by now the government would have established regulations to protect banks from some of the risks associated with trading crypto.
However, Chavez added that the firm isn't yet ready to begin making markets in "physical bitcoin". Goldman Sachs' strategy is a sound and sensible way to approach bitcoin.
And while Bitcoin has plunged before, for now any hopes of broader retail participation (ETFs) or institutional pick up appear to have been indefinitely delayed.
The move was seen as Wall Street walking away from digital currencies.
Michael McCann, Senior Economics Lecturer at Nottingham Business School, also looks at the latest Bitcoin price increase trend soon taking it to $10,000, but is predicting the longer-term flourishment of Bitcoin as a "risky business" because of market fickleness. "And in the commodities market, there's many ways to participate". Although Martin wanted to own them, he was a little skeptical about it.
The fragility of the crypto market was tested by this news as it took Bitcoin (BTC) down over five percent bringing it below United States dollars 6400. The revelation delivered brief unpredictability across cryptocurrency markets, Bitcoin losing up to $500 in minutes and proceeding to lose support at $6,500.
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