Will it rebound? Cryptocurrency panic is setting in.
As the cryptocurrency panic sets in, Bitcoin is now taking out $1K markers on the downside with the same speed or more with which it took out milestones on the upside a few weeks ago. The crypto – around $11K not many hours ago – at one point this morning slipped below $8K. It’s currently down 8.8% at $8,433. What is going on?
Holding up strong until about midday yesterday, Ethereum has joined the crash with gusto, down 20% to $819. Ripple, Litecoin, Dash, and the rest of the sector are down as much as 30%.
The cryptocurrency world has been plagued by a spate of negative news.
India’s Finance Minister Arun Jaitley said the country wants to “eliminate” the use of digital currencies in criminal activities, signaling tighter regulation in the country.
The New York Times reported Wednesday that an increasing number of digital currency investors are worried the price of bitcoin and other digital currencies have been inflated by cryptocurrency exchange Bitfinex, which is included in CoinDesk’s price index. Bloomberg reported Tuesday that in December, the U.S. Commodity Futures and Trading Commission subpoenaed Bitfinex and a cryptocurrency company called Tether, which is run by many of the same executives.
Tron is down, microcoins such as HTML, NYC, OMG, BNB were all getting killed as well.
However, traders may be looking for a bounce, as they have bid the names up 8% off the lows, and some are actually in the green now. Its it a fake bounce? Time will tell.