Cryptocurrencies dropped by average of 20% over the weekend

Image: INQUIRER.net stock photo

Cryptocurrencies gained large growth in the past few months, sending the leading crypto Bitcoin to reach values of over $4,000 (roughly P200,000). However, value suddenly dropped an average of 20 percent during the weekend.

Monitoring data from the website Coin Market Cap showed Bitcoin’s sudden decline in value. This was mirrored by other cryptocurrencies such as Ethereum and Litecoin. While Bitcoin only suffered around a 16 percent loss, Ethereum went down by as much as 23.5 percent.

Image: Coin Market Cap

While the drop in value appears significant through a standard stock market perspective, Bitcoin is still valued at roughly twice the amount it was worth two to three months ago.

Image: Coin Market Cap

According to a TechCrunch report, one of the possible reasons for the fall in value is the outlawing of ICOs (initial coin offering) by the Chinese government. ICOs allow investors to buy into cryptocurrencies.

Apparently, cryptocurrency has “seriously disrupted the economic and financial order.” The number of ICO entities returning funds to investors all at the same time may have been the reason cryptocurrency value dropped across the board.

Cryptocurrency was never known to have stable activity. Values rise and fall just as quickly. The most recent data, as of this writing, shows that Bitcoin value is beginning to steadily rise again. It may be a sign of recovery from the mass cash-outs brought about by Chinese ICOs closing shop. Or it could just be another sharp turn in the rollercoaster nature of cryptocurrency. JB

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