February welcomed the cryptocurrency enthusiasts with a new drop that extended through most of the month’s first day. It must be noted that banks, some governments from around the world, and those who think that digital currencies harm the market, are still terrified and continue to discredit digital assets.
Regulations to digital exchanges, monitoring to the security systems of those platforms, banning confidential accounts, fraud by some companies that scam some of those who bet in this new economy, warnings of a Bitcoin ban in some countries and some other factors, expose the helplessness of some critics in their attempt to vanish this financial phenomenon. But as they fail, now they are looking to control a 'digital monster' that seems unstoppable.
Those are some of the reasons why the digital markets turned red on Thursday, when some of the industry’s main assets lost between 10% and 20%. Bitcoin spent a couple of hours below $9,000, and lost around 13 percent.
Other digital currencies also declined, most of them with worse losses than Bitcoin, like Ripple (15.69%), Bitcoin Cash (14.06%), Cardano (18.19%), Stellar (15.08%), NEO (13.35%) and Litecoin (12.70%). All in all, 94 of the world’s Top-100 cryptocurrencies suffered a pullback.
But Thursday’s session had an interesting example in Ethereum, which bucked the trend and moved higher before eventually sharing the same fate of other cryptocurrencies and closed with losses of 9.18 percent.
Market capitalization started the session at $517,172,000,000.00. But the plunge bottomed down in the closing hours to $433,247,000,000.00, for a net loss of 16.23%.
Unfortunately, this phenomena is affecting the market trusting community and, as a collateral damage, it translates in panic sales by the fear of losing their investment.
It is important for all the users involved in this financial market to understand that the investment world is controlled by market behaviors, speculations, and social and political factors. As we’ve mentioned in other blogs, cryptocurrencies are here to stay and we are convinced that this financial turmoil won’t last for long.
Markets won’t only turn green again, but they’ll also bounce back to the levels seen last December.
Graphic sources: Coinmarketcap.com