Cryptocurrencies witnessed yet another meltdown as their prices plunged more than 10% on Friday reports Investing.com. As per the latest data from OnChainFX, most of all significant cryptocurrencies have nosedived 90% from their all-time high. Bitcoin is struggling the most in the recent fallout as it lost 13.00% of its market value over the last twenty-four hours to close at $3,419.6 by 1:31 AM ET (06:31 GMT) on the Investing.com index. Ether (Ethereum) and XRP (Ripple), the second and third largest cryptocurrencies fell 19.1% and 12.2% respectively, on the Poloniex exchange. Ethereum is trading at $86.68 and XRP at $0.30396. Litecoin, another major cryptocurrency also slid 14.6% to $25.999 on the Bitifinex exchange.
Data has revealed that among the 15 largest digital coins by circulating market cap, 11 of them have declined by more than 90% from their respective record highs set almost a year back.
Zennon Kapron, director at financial technology consultancy Kapronasia told CNBC that “The market is in a general bearish trend that doesn’t seem to be letting up driven by what seems to be a general negative sentiment towards crypto, As the market is heavily retail driven, it’s very much at the mercy of group sentiment which causes huge swings.”
One Bitcoin was worth $17,900 last year December. After concurrent drops, Bitcoin had managed to stay afloat above the $6000 mark every month for the most part of the year. In preceding weeks cryptocurrencies had observed sharp daily drops which resulted in Bitcoin Cash being split up into two contested versions on November 15 called “Bitcoin ABC” and “Bitcoin SV.” This split was attributed to disagreements in the community about how to scale a cryptocurrency efficiently so that it can cope with a higher volume of trading.
The major development to cause this present depression could be connected to the fact that certain U.S. lawmakers introduced a couple of bills relating to protecting consumers in the scene. They introduced two bills that could bring more oversight and transparency to the cryptocurrency industry. One bill directed the Commodity Futures Trading Commission to describe how price manipulation could happen in virtual markets, then recommend regulatory changes. Another sought to keep the U.S. competitive in the global industry.
This is not a cataclysmic event which should cause such chaos. Analysts ascertain that it’s most likely a matter of group sentiments.
However, not all cryptos are tumbling reports Fortune. Bitcoin SV, or “Satoshi’s Vision,” a reference to Satoshi Nakamoto, the mysterious founder or founders of Bitcoin, has been observed to be peaking and is up 22%, on the day.