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Almost $44bln wiped out from the January dips of Bitcoin

Feb 02, 2018 Posted /  4597 Views

Almost $44bln wiped out from the January dips of Bitcoin

When last year (in 2017) everybody was making videos on how bitcoin can make you rich in a month's time, the very first month of the year 2018- January proved that it can make you poor in the same duration. The initial month in new year gave the exact example that how it can erase wealth as soon as it can create it.

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If we go by the data and statistics provided by the Coinmarketcap, in January alone the currency faced the biggest capital wipeout, where its month's slide rolled out to some $44.2 bln off from the $200 bln market capitalization. This can be called as one of the biggest wealth wipeouts in one-month, calculating the short history of digital assets.

“Once we got to $10,000, crypto had adopted this Teflon persona of late that it’s always going to find a base and go back up again,” Stephen Innes, head of Asia Pacific trading at Oanda, Singapore told the Bloomberg in a telephonic interview. He further added,

“When we’re talking in the realm of riskier assets, and something shaves off 50 percent of its value, it tells me there’s going to be an extension lower. The sad thing is a lot of people will be burned because they will continue to buy dips.”

The December heights to January lows

Bitcoin experienced great heights when in 2017 it reached the $20,000 levels after the two mainstream and regulated exchanges CBOE and CME decided to launch the Bitcoin Futures contract in the U.S. But suddenly after reaching these new highs, it immediately started dropping low. A series of negative news and FUDs captured the market that buffeted the value of Bitcoin and crypto-cousins, with loss intensifying further in the new year of 2018.

At the end of the month of January, another blow came and it furthered the dips- a record $500 mln heist of NEM (XEM) at Japan's biggest exchange Coincheck on January 26. This increased the pressure on regulators as cryptocurrency market is mostly been criticised for its unregulated characteristic. The probe into the businesses have increased and authorities in South Korea have introduced a real-name account system to end anonymous trading, which is mostly linked with the more serious debate of the problems of money laundering including a ban on crypto-exchanges.

Many analysts including Innes are evaluating the further plunging of cryptocurrency to the $5,000-to-$6,000 range before ultimately rallying back to $10,000-to-$15,000. The road is certainly bumpy provided that the authorities around the globe are only going to increase their scrutiny and monitoring of the cryptocurrency industry from here on.

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Tags: market capitalization dips of Bitcoin

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