Crypto Market Nears $100 Billion As Bitcoin (BTC) Falls to New Yearly Lows
The cryptocurrency market is getting dangerously close to dipping below $100 billion in valuation, the lowest levels since early August last year – 16 months ago. That means it has gained, and lost, over $700,000,000,000 dollars in that same time period – almost the entire market value of Apple Inc.
Bitcoin (BTC), along with the rest of the market, experienced a fresh slump last night, breaking support and dropping to new lows of $3,197. The beginning of the week hinted at a possible recovery with the price reaching $3,670 on Monday, but all those gains were wiped off again during the week. Ethereum (ETH) has also been hard hit in the past 24 hours, dropping from over $90 to almost $84 in a matter of hours. Earlier this week the asset showed promise of breaking crucial resistance at $100, only to reach $96 and quickly fall again.
Whales and FOMO
The market is likely managing to keep its head above water due to investors “FOMO” buying the low prices in order to not miss out on the next bull run. However, massive sell-offs from what can only be Bitcoin ‘whales’ are causing the market to dump in what appears to be five-day intervals. The first few of these dumps were significant but have since either reduced in size or been buoyed up by investors accumulating. Either way, despite the continuing bearish trend, the initial speed at which the market began crashing has slowed and it could now be gearing up for a recovery in the coming months.
The slump coincides with a nationwide bomb threat that has spread throughout the United States demanding ransom money paid in Bitcoin. Hundreds of locations, including schools and government facilities, received emails threatening a bomb attack if payment is not made – however police have since reported the threats as not credible.