Crypto winter came in with a cold and nasty blast, leaving investors with a bad case of market flu. In the past week, Bitcoin (BTC) rounded out its sixth consecutive month in the red while the NEM Foundation suspended all projects and partnerships due to its sinking XEM price.
However, the news wasn’t all bad. XRP (the native currency of the Ripple network) received a major boost on Wednesday after Swift – the international payments network – announced it had partnered with a crypto startup to test new GPI payments. This was a significant development for the so-called ‘banker’s cryptocurrency,’ which seeks to disrupt the Swift network’s grip on US$200 billion in daily transactions.
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BITCOIN BLUES
The end of January marked BTC’s sixth consecutive month in the red, highlighting the severity of the chilly bear market. Over that stretch, the leading digital currency has tumbled 55%. Bitcoin fell another 7.7% in January, with the majority of the declines concentrated in the early part of this week.
On Monday, BTC fell by as much as 4% to reach fresh six-week lows. The pullback dragged the world’s leading cryptocurrency below a vital long-term support that will likely pave the way for further downward pressure in the short term.
The sudden selloff weighed heavily on the broader cryptocurrency market. The combined value of all cryptocurrencies reached a low of US$111 billion. As January ended, Bitcoin Cash (BCH), Ethereum (ETH), Stellar (XLM), and Bitcoin SV (BSV) were among the hardest hit.
CANADIAN CRYPTO EXCHANGE FILES FOR CREDITOR PROTECTION
Earlier today, Following months of financial and legal troubles, major Canadian cryptocurrency exchange QuadrigaCX has filed for creditor protection, according to an official announcement from the company.
As per a statement, the firm filed an application for creditor protection in the Nova Scotia Supreme Court today in compliance with the Companies' Creditors Arrangement Act (CCAA). According to PwC Canada, “the CCAA presents an opportunity for the company to avoid bankruptcy and allows the creditors to receive some form of payment for amounts owing to them by the company.”
The announcement also states that on February 5, 2019, the court will be asked to appoint ‘Big Four’ auditing firm Ernst & Young as an independent third party to monitor the proceedings.
