Cryptocurrencies have declined sharply today, with the total market cap plunging over US$7.5 billion as Bitcoin (BTC) – the world’s number-one digital asset – dropped to a new six-week low at US$3488, down 3.7%.
According to Einstein Exchange, other major cryptos also moved sharply lower with the total coin market capitalization around US$112.2 billion at press time, compared to US$120.15 billion last Friday.
XRP (the native currency of the Ripple network) sank 7.1% to US$0.30, Ethereum (ETH) tumbled 9.4% to US$103.03, Bitcoin Cash (BCH) plummeted 11% to US$109.51, while Litecoin (LTC) dove 6.82% to US$33.91.
CLICK IMAGE BELOW FOR LIVE CRYPTOCURRENCY PRICE INDEXES FROM EINSTEIN EXCHANGE:
Cryptocurrencies have been under pressure after JP Morgan analysts said last week that Bitcoin may fall as low as US$1,260, or even lower, due to its failure to prove its worth and break into the financial mainstream.
Hedge fund and asset managers have largely stayed clear, despite some advances in market infrastructure that have seen safer methods to store digital money emerge, with many worried about market volatility, security flaws, and a proclivity for illicit usage.
The practice of cryptocurrencies for payments – the initial intended purpose of BTC – will remain “challenged,” JPMorgan stated, adding it was unable to identify any major retailers that accepted digital coins in 2018.
Bitcoin is likely to have cost support at around US$2,400, but could fall below US$1,260 if a bear market persists, JPMorgan also warned.
Following the recent trading norm, the only digital currencies that have remained largely unchanged in price are the suite of US dollar-backed stablecoins including Tether (USDT), TrueUSD (TUSD), Paxos (PAX), and Gemini Dollar (GUSD). In a recently-published article in the Washington Post, investing in stablecoins appears to be the latest trend in stemming the high tide of crypto market volatility.
