After ending the last week on a higher note, Cryptocurrencies dipped largely in Monday’s trade, with Bitcoin (available on Coinbase) and Ripple (available on Binance) leading the downward trend. Bitcoin (available on Coinbase) declined close to 8.37% to $14,806, while Ripple (available on Binance) dipped 11% to $2.40. Litecoin (available on Coinbase) also plunged 6.4%, but Ethereum (available on Coinbase) prices moved higher by 4.7% to $1,143.56.
“The reason Ripple (available on Binance) is surging so much is it’s a bubble,” said Erik Voorhees, CEO of digital asset exchange ShapeShift and a vocal advocate for Bitcoin (available on Coinbase) as a way to separate money and the state. “Testing crypto with banks doesn’t make sense. The whole idea of crypto is you don’t need banks.”
After today’s rally, Ethereum (available on Coinbase) rebounded to the second most valuable cryptocurrency based on the market capitalization. The growth of 4.7% in Ethereum (available on Coinbase) price and the decline of more than 11% in Ripple (available on Binance) value sTron (available on Binance)gly impacted their market capitalization. Ripple (available on Binance)’s market capitalization is hovering around $98.5 billion, and Ethereum (available on Coinbase)’s value increased to $111.9 billion. However, Bitcoin (available on Coinbase) still holds the top spot amid its market capitalization of $255.1 billion.
There were two major reports that impacted cryptocurrencies in Monday’s trade – China may impose regulatory pressure on cryptocurrency and the elimination of South Korean exchange data from CoinMarketCap. Both reports have created a broader selloff in crypto markets.
Massive swings in cryptocurrency markets are usual. Last month, cryptocurrencies hit the highest level in the history, while a broader profit-taking tank price in late-December from earlier highs. The latest dip is concerning, which is mostly due to China, as China is the home to the majority of the globes cryptocurrency servers.
Investors concerns are mounting over the future of digital currency, as strict regulations from China could push crypto players to shut down their operations.
Bloomberg has also reported during the weekend that the Chinese government could end the majority of Bitcoin (available on Coinbase) mining operations in the days to come. This move will also reduce investor’s optimism over the cryptocurrencies. Overall, crypto investors should now adopt a wait and see a strategy to observe the actual impact of new changes on investor’s sentiments and crypto markets.
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