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Crypto scared yet? You should be! $70bn lost in 7 days

It’s a bloodbath Bitcoin and company are crashing and there is no floor in sight.

There are reasons and there are repercussions.

But first the damage.

BTC: $4396 and falling

Bitcoin has gone down below the $5,000 key resistance level and is currently priced at $4,396 at time of writing. It is down 76% from its all-time high of $20,000

And oh, Ethereum after being down $134, dropping almost 15%, and down 87% from its all-time high, is no longer No.2 in market cap. Stellar is.

The market lost $25 billion in 24 hours, $70bn in one week.

Read Bitcoin’s current death candle: Bloodbath crash

TRON, Binance Coin and Monero you can see that they have recorded an average drop of around 16% daily recently

Total Market Cap today is $146.3 bn.

Read: Cash-, gold-backed tokens for Islamic investors in X8 currency 

Image courtesy of MarketCap


While analysts warned that although major barriers such as $4000 would not be broken “without a fight,” it was likely current levels were “not a bottom,” reported the Bitcoinist .

Resistance is now eyed at $4k

“Altcoin markets had seen decidedly more determined sell-offs. Unsurprisingly, Bitcoin Cash $223.893 +9.55% led the rout, losing almost half its value in just 24 hours as the consequences of two rival chains’ infighting suddenly showed,” said the Bitcoinist.

“Ethereum (ETH) $136.125 +2.18%, formerly the largest altcoin by market cap, also dipped to new lows, sparking fears it could soon lose its place in the top three assets as Stellar limits its losses.”

Read: Saudi to launch Islamic crypto Noorcoin ICO in April 2019

Reasons for crash

Fortune says 3 recent events might explain the current collapse.

The first is the SEC’s announcement on Friday that the operators of two “Initial Coin Offerings” (ICOs) broke the law by selling unlicensed securities, and must pay fines and restitution

A second possible explanation for the crypto crash is last week’s Bitcoin Cash fork.

A third possibility is that Crypto investors got spooked by bad news from chip-makers Nvidia and Advanced Micro Devices, which recently reported steep sales declines for cryptocurrency equipment.

“The sales declines suggest interest in crypto has waned and is unlikely to pick up anytime soon. This could explain the chill on crypto asset prices, but also raises a chicken-and-egg question: Namely, is the chip makers’ misery a cause of the collapse, or just another symptom of it?” asked Fortune.

Did we say three?

Well, the whole crypto thing might be a bust.

“This is the position of tech exec Sam Gellman who, in a thoughtful series of tweets, points out that crypto has sucked up $30 billion in ICO money in two years and hasn’t delivered a user base beyond crypto speculators,” reports Fortune.

Read: 3 developments that shake and shape the crypto world


According to notable crypto figure and Morgan Creek Digital founder Anthony Pompliano (Pomp), significant price drawdowns this year could lead to crypto hedge funds closing up shop soon, CCN reports.

Fund managers receive a commission based on their performance, in relation to associated crypto asset prices for each investment period.

“We have seen 50-80% decreases in net asset values in some funds since then. This means these fund managers will not receive a performance fee in 2018, which drastically reduces the income of the individual manager”, Pomp explained.

Pomp explains many fund managers may simply close shop and return investor finances.

Previous ICOs could face fines, as well as requirements to refund investor funds at original ICO price, in original USD value.

“The hitch here is the fact that most ICOs raised funds via cryptocurrencies. With prices down as much as they are currently, these ICOs could owe investors more money in USD than they currently own,” says CCN.

Read: Ripple sets eyes on Dubai’s expat remittances

ICOs may not have the money to pay back investors, due to holding assets that have plummeted in price.

These ICOs may need to file bankruptcy, leading to fund managers potentially seeing further losses.

Forbes says the U.S. Securities and Exchange Commission (SEC) continues to crack down on these innovative sales of digital tokens.

On Friday, the SEC announced that it had settled with Airfox and Paragon Coin Inc. The two companies, which both raised more than $10 million apiece through ICOs, had to pay fines and remunerate investors who suffered losses.

Ernst & Young said in an October report that 86% of ICOs whose tokens are listed on exchanges saw these digital assets lose value.