The volatile cryptocurrency market has been in a massive downturn in the recent hours. Therefore, this represents the largest sell-off since the high depressions which was experienced early February.
The total market capitalization has been involved in a drastic fall in just 24 hours. This fall has seen it go down from $372 billion to as allow as $309 billion. This is according to coinmarketcap.com. Though a short recovery saw it increase the market cap to $317 billion, this is still lower than Bitcoins apex market cap of $335 billion achieved in mid-December.
Is there more sell-off?
Bitcoin has been highly affected by the sell-off since it was already enjoying the recovery mode since the last sell-off. Therefore, Bitcoin was involved in a fall in price by around 13%, and at some point, it was selling at $7,800.
Bitcoin is not the only depreciating coin since other coins such as ripple and Ethereum has followed the same trend. Ethereum dropped below the $600 price level after achieving the highest of $1,400 in January. Ripple also was involved in this drop and reached the $0.64 level from $0.78.
All the other major coins were involved in the same drop.
Who is to blame?
The selloff was due to a number of facts associated with the market. First, Google announced that they would ban all the cryptocurrency related ads, crypto wallets and also trade advice. This is the major reason why.
On the other hand, Mr. Gox played a huge role in the drop since the sell-off one month ago. During the last Bitcoin drop in prices, Mr. Kobayashi was responsible for it.
Additionally, the regulatory uncertainty also had a major role in the drop. This is because recently, due to the $500 million coincheck hack, the Japanese economy made a decision to improve cryptocurrency regulations in the country.
Moreover, this could be due to the fact that the major banks are barring customers from the purchase of cryptocurrencies using their plastic cards. For instance, HDFC Bank in India which banned customers from using their debit and credit cards in purchasing cryptocurrencies.