Cryptocurrencies Slowly Recover After Sell-off Panic, with Ripple Bouncing Back 65%

Indeed, the currency had increased in value from under $1,000 to almost $20,000 in 2017 alone, and in 2012 was worth just $4 per coin.

Though both Ripple and Bitcoin are commonly referred to as cryptocurrencies, there are differences between them. In a staff letter, the watchdog said, “In addition, the innovative nature of cryptocurrencies and related products, as well as their expected use and utility in our financial markets, means that they are, in many ways, unlike the types of investments that registered funds now hold in substantial amounts”.

“It’s mainly been regulatory issues which are haunting the cryptocurrency, with news around South Korea’s further crackdown on trading the driver today”, said Think Markets chief strategist Naeem Aslam, who holds what he described as “substantial” amounts of bitcoin, Ethereum and Ripple.

Even if such a ban fails to materialise, South Korea could still impose strict new regulations on the market.

XRP has moved into the top five cryptocurrencies by market capitalization on CoinMarketCap amid their dramatic rise over the a year ago. With bitcoin, investors have been betting that it could be a new kind of asset, outside the control of any government, something like digital gold.

“In terms of crypto-currencies, generally, I can say with nearly certainty that they will come to a bad ending,”. Chris Keshian, the CEO Apex Token Fund, a fund of crypto hedge funds said: “We’ve seen a lot of movement towards Canada”. Contrary to the libertarian romanticism that inspired bitcoin’s creation, most Western fiat currencies work really well as money. For one, the digital currency, which is supposed to derive its value from its use as a medium of exchange, has had negligible acceptance in the real world of commerce.

Even those who purchased bitcoins two months ago, when the closing price on November 17 was $7,709, could suffer a loss, given how fast bitcoin’s price has cratered: Its price dropped from $17,527 on Jan.6 to $10,587 at 3 p.m. EST on Wednesday, a decline of 43 percent. This represents a significant fall for Bitcoin from the highs set at the end of a year ago. Don’t blindly invest in something without doing proper and thorough research, and never invest what you can’t afford to lose.

If you’re organized, it may even be possible to travel the world spending only Bitcoins, as Felix Weis proved during an 18-month trip that encompassed 27 countries. The Bitcoin rally lost some steam toward the end of the session and the cryptocurrency ended the session at $11,474.90, still higher than its opening price of $11,198.80.

Other crypto-currencies have also experienced steep falls, including Ethereum, Ripple and Bitcoin Cash. The steep decline has also affected other major cryptocurrencies, including Litecoin, Ethereum, and Ripple. That is the question cryptocurrency aficionados should be asking themselves Wednesday, for the recent sharp plunge in cryptocurrency prices is signaling that the crypto party may be over.

Less than two weeks ago, the cryptocurrency market reached an all-time high above $830 billion, before fears that South Korea, China, and Russian Federation were all mulling crackdowns on mining and exchanges lead to a global sell off. Other machine owners claim that sellers are holding back in anticipation of higher prices so there is less supply. Once that expectation of price appreciation disappears, the bubble quickly deflates. Bitcoin ended the year with a 15x increase in value.