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Bitcoin loses nearly a third of its value in a week

By Sheetal Sukhija, Middle East News
21 Nov 2018, 01:48 GMT+10

NEW YORK, U.S. - In a matter of a week, Bitcoin has lost nearly a third of its value, dropping 30 percent, slashing the value of other cryptocurrencies too.

According to the Bitstamp exchange, on Tuesday, hours after U.S. tech stocks endured fresh losses on the Wall Street, the world's best-known cryptocurrency was trading 7.5 percent lower, at $4,354.20.

This was Bitcoin's lowest level on the Bitstamp exchange in over a year and the cryptocurrency has now lost about 75 percent it value since December.

Bitcoin's bull run stopped below a record $20,000 just 11 months back and since then, it has largely remained on a downward spiral.

The Bitcoin bloodbath over the last week has left other cryptocurrencies affected too, with Ethereum's Ether losing 10 percent on Tuesday, while Ripple's XRP was down 13 percent.

The industry tracker Coinmarketcap.com said that the total market capitalization of virtual currencies is now below $150 billion - which is much lower than the around $800 billion recorded in January.

Now, market analysts claim that digital currency values are expected to fall further since the sector is currently facing renewed regulatory scrutiny in the U.S.

Fawad Razaqzada, an analyst at Forex.com explained, The euphoria has died and prices have consolidated with lower lows and lower highs. A lot of people have lost interest."

Further, Naeem Aslam of Think Markets said, "Fundamentally speaking, the current sell-off is once again triggered due to the regulatory pressure. The SEC (U.S. Securities and Exchange Commission) reminded the crypto world that it has the final say over anything which smells like a security. The department issued civil penalties against two cryptocurrency companies because they failed to register initial coin offerings as securities."

Meanwhile, Neil Wilson, chief market analyst at markets.com described the Bitcoin slump as a "bloodbath" and asked pointedly, "Where is the incentive to buy?"

Wilson said, "It does rather look like the bottom is coming out of this market. Bitcoin has easily breached key psychological support at $5,000 and with it trading at $4,500 the move back to the September 2017 lows at or just below $3,000 looks eminently achievable. The spillover into other crypto assets matters. Bear target should be 0, as that is what they're worth."

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