A new and sharp slide in the digital currency market shook those who bet their economies in the investment of this new financial sector.
In the early hours of January 16, the digital currency market took a sharp downturn and left millions of people scrambling for answers.
After a long run of massive gains in the past month, the bull market in the digital currency sector suggested a correction was impending.
Nonetheless, analyst point to other factors around the cryptocurrency sector, like global politics that are still looking to discredit this decentralized market. Especially the Chinese and South Korean governments, who are still trying to impose tighter restrictions to digital currencies.
Another factor for this steep slide was the speculation around the market itself, as well as one person in particular: Michel J. Bell, global market strategist for J.P. Morgan, and the man responsible of releasing information about the economy and global markets to retail and institutional customers in the United Kingdom and the rest of Europe.
“The Crypto dip was caused by Mike Bell of JP Morgan claiming Governments could ban cryptocurrencies. Well ... how? This is the same company that called BTC a fraud. It's a bank FFS. They are rightfully terrified of what we are doing. But it can't be stopped”, wrote John McAfee on Twitter.
That's how a string of factors created a downfall in the digital currency market by the middle of the week. (Source: www.coinmarketcap.com)
1. Bitcoin: Tuesday, Jan. 16
At 01:29:23: $13,591.50
At 22:34:22: $10, 194.90
At 23:59:24: $11,490.50
2. Ethereum: Tuesday, Jan. 16
At 01:44:10: $1,232.66
At 22:34:12: $875.55
At 23:59:11: $1,053.69
3. Ripple: Tuesday, Jan. 16
At 01:44:01: $1.57
At 22:29:01: $0.91
At 23:59:01: $1.18
4. Bitcoin Cash: Tuesday, Jan. 16
At 01:44:12: $2,203.01
At 22:34:16: $1,555.97
At 23:59:17: $1,772.07
Those factors caused a great impact in the global capitalization market and those involved constantly in this financial world.
By 12:47 a.m. on Tuesday 16, the capitalization on the market was about $655,749,000,000.00. The nightmerish-like dip reached its lowest point by 10:32 p.m., with the capitalization of the market plunging to $450,537,000,000.00, and finally bouncing back to $537,320,000,000.00 at the end of the day, according to www.coinmarketcap.com.
Despite the slide, the Chicago Market Exchange predicted that Bitcoin could soon bounce back to around $18,000.
The late rally in the final hours of that Black Tuesday was the signal for a recovery in the short term. But January 16 will be remembered as the day the digital currency market took one of the biggest hits in its still short history.
It must be noted that this is a highly speculative sector, for those willing to take greater risks and have the discipline to get involved in the investment and financial world. But especially for those willing to keep a daily tracking of the crypto market, and understand the variables and factors that can move the market higher or lower at any given time.
By Omar Cortés