The great cryptocurrency crash of 2018 is heading for its worst week yet.
As of today, Bitcoin has now gone below US$4000 (NZ$5898) and on Friday, most of its peers tumbled, extending the decline of Bloomberg Galaxy Crypto Index since 16th November 16 to 23%. Since the crypto-mania peaked in the beginning of January, that has been the worst weekly slump.
After last year’s epic rally that surpassed many of the most notorious bubbles in history, cryptos have become mired in an almost US$700 billion rout that indicates few signs of abating. Most concerns that led to the 2018 retreat – such as exchange snafus, community infighting and increased regulatory scrutiny – have only intensified.
Even after most virtual currencies saw losses exceeding 70%, Stephen Innes (head of trading for Asia Pacific at Oanda) does not see a strong evidence of a capitulation that would signal a market bottom. He said: “There’s still a lot of people in this game. If Bitcoin collapses, if we start to see a run down toward US$3000, this thing is going to be a monster. People will be running for the exits.”