Deepening problems in the cryptocurrency market
Last week, the cryptocurrency market experienced a major sell-off, exacerbating the problems it has been facing since the beginning of the year. After rising to around $39,000 at the beginning of the week, bitcoin's value over the past few days has fallen by 16 percent. It has continued to fall since then – it is now trading above $33,000. Its value is now more than 50 percent below its previous record (ATH), set in November last year.
Ethereum has experienced a more serious decline of around 17 percent since Thursday, likely due to the many market hurdles the cryptocurrency has faced. Ethereum rose to around $2,900 on Thursday, but has since fallen to just above $2,400.
Cryptocurrency investors are wondering when this series of declines will end.
"While it may not be a consolation for cryptocurrency investors facing significant declines, the implication is that retail investors no longer have to face the market alone, and the mere presence of institutions as owners – from the perspective of long-term value and potential – is positive," Simon Peters, cryptocurrency analyst at the eToro platform, said.
(WBJ)
