Cryptocurrency Market Drops to Lowest Value Since November
- Author: Darren Santiago Feb 07, 2018,
Feb 07, 2018, 1:08
Last week was Bitcoin's worst in nearly five years, seeing its value fell below $8,200, but now things have gone from bad to downright terrible for the cryptocurrency. Citigroup, JPMorgan Chase, and Bank of America have all joined the ranks of the companies who have enacted a bitcoin ban.
More cryptocurrencies will be added in the coming weeks as the deVere Crypto Research Department, run by some of the world's leading blockchain experts, analyses their inherent values. In the end of December, Bitcoin has reached $20K.
XRP's market capitalization is around $120 billion lower than its peak value of $147 billion in early January - XRP even overtook Ethereum as the second largest cryptocurrency by market cap at the time.
Bitcoin surged in value during in 2017, starting the year at around $900 and topping $20,000 in December.
In the same period, other cryptocurrencies have had mixed fates.
Monday saw New York's headline index lose 1,175 points, equating to a 4.6% drop, marking the worst single trading session loss in Wall Street history.
CoinbaseThe virtual currency’s price at the time of writing was £4869.30
The crash in cryptocurrency market is mainly because China bans foreign exchanges platform on trading cryptocurrency.
Customers will still be able to buy digital currencies with debit cards, it said.
But it's not just Bitcoin.
While there have not been yet similar announcements from other United Kingdom credit card issuers, and the ban is not effective on purchasing with other forms of payment, we do not know if more banks will join the ban due to the possible large fluctuations in its value. The median transaction fee is around $2.60, according to BitInfoCharts, while Blockchain.info shows the average confirmation time is about 10 hours.
What is causing the drop in the value of Bitcoin?
Cryptocurrency, which gained popularity because of its non-reliance on governments and banks, has also been the target of hackers who have reportedly stolen millions of dollars worth of Bitcoin in recent months. That's happened in the USA with a Dallas-based firm rolling out a large coin offering. "There's regulation speculation in India, South Korea, and the U.S. And then there's hacking, the Facebook situation and finally the Tether story has people anxious as well". South Korea has been examining closely whether it should enact a ban on cryptocurrency altogether as a solution to the problem.