It isn’t just the local share market that’s in selloff mode right now. Things have been even worse for digital currency traders over the last 24 hours after the volatility spread to the crypto market.
At the time of writing the crypto market is a sea of red with just two coins in the top 50 in positive territory.
This has led to the value of the market falling by over 7.5% since this time yesterday to US$201 billion according to Coin Market Cap.
As well as being dealt a blow by a warning from the International Monetary Fund earlier this week, I suspect that traders have been left disappointed that cryptocurrencies have failed in their role as “safe haven” assets like gold.
For some time now Bitcoin advocates have claimed that the coin could be used as a store of value or as a digital form of gold. But as markets crumbled yesterday the Bitcoin price crumbled along with them, while the price of the precious metal surged higher.
This could be very bad news according to Windsor Holden from UK-based Juniper Research.
According to CNBC, in a study released earlier this, Mr Holden said: “If Bitcoin cannot make gains in such favourable circumstances, then it is unlikely to prosper as and when these issues are resolved. We feel that the industry is on the brink of an implosion.”
I think Holden makes a great point and would suggest traders approach the crypto market with caution.
Here is the current state of play compared to 24 hours ago:
The Bitcoin (BTC) price has fallen 4.4% to US$6,292.94 per coin, reducing its market capitalisation to US$109 billion.
The Ethereum (ETH) price has plunged 12.6% lower to US$196.84. This decline leaves ETH with a market capitalisation of just under US$20.2 billion.
The Ripple (XRP) price has dropped a sizeable 13% to 40.33 U.S. cents. The XRP market capitalisation has fallen to US$16.1 billion following this decline.
The Bitcoin Cash (BCH) price has tumbled over 13% to US$445.48. This decline has reduced the Bitcoin offshoot’s market capitalisation to US$7.75 billion.
The EOS (EOS) price is down 10.3% to US$5.27. This decline means the EOS market capitalisation has dropped to US$4.8 billion.
Outside the top five things were equally bleak. Stellar (XLM) is down 10.4%, Litecoin (LTC) is off 9.6%, Tether (USDT) is down 0.15%, Cardano (ADA) has fallen 11.5%, and Monero (XMR) has tumbled 8.1%.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.