- Cryptocurrency crash extends to another day.
- Bitcoin falls below $6,000.
Bitcoin, ethereum, litecoin, ripple, and bitcoin cash
suffered double-digit percentage losses early in the session
but are recovering some ground by mid-morning.
LONDON — Cryptocurrencies are fighting back mid-morning in Europe
after double-digit percentage losses early in the session.
Bitcoin briefly fell below $6,000 at around 8.00 a.m. GMT (3.00
a.m. ET) for the first time since mid-November.
Hussein Sayed, chief market strategist at FXTM, said on Tuesday
morning: “The most famous digital currency has fallen 69% from
December’s record high, and almost 56% from the start of the
Ethereum, litecoin, bitcoin cash, and ripple also posted
double-digit percentage losses early on Tuesday morning. Ethereum
was down 18% at one stage.
But the crypto market is making up ground at just after 10.00
a.m. GMT (5.00 a.m. ET), paring back losses to the low
Here’s the scoreboard:
Tuesday’s slump follows
carnage in the crypto market on Friday and
a market slump in early January. From a peak of $830 billion
at the start of January, the global cryptocurrency market has now
shrunk to $285 billion, according to data provider
The latest dive comes in tandem with
a global stock market rout but that appears to be
uncorrelated with the crypto crash.
Commentators have been blaming fears of regulation, cooling
interest from Asia, and fears over the role cryptocurrency Tether
plays in the bitcoin market. Banks are also
clamping down on customers buying cryptocurrencies on their
Miles Eakers, chief market analyst at foreign exchange business
Centtrip, said in an email on Monday night: “Governments across
the globe continue to clamp down on retail investors speculating
on cryptocurrencies, with the People’s Bank of China stating it
would step up measures to remove any onshore or offshore
platforms related to virtual currency trading or ICOs, ‘to
prevent financial risks’.”