2018 cryptocurrency crash

The 2018 crypto crash[1][2][3][4][5] (also known as the Crypto carnage[6][7], Bitcoin crash[8] and the Great crypto crash[9]) is the biggest sell-off of most cryptocurrencies from January 2018. After an unprecedented boom in 2017, the price of Bitcoin has fallen by about 65 percent during the one month from 6 January to 6 February 2018. Subsequently, nearly all other cryptocurrencies also peaked from December 2017 through January 2018, and then followed behind Bitcoin. The cryptocurrencies' market capitalization has lost at least 342 billion US dollars in the first quarter of 2018,[10] previously the largest loss ever. As of September 2018, cryptocurrencies have collapsed 80% from their peak in January 2018, making the crypto crash worse than the Dot-com bubble's 78% collapse.[9]

Background

The price of Bitcoin in 2017 had grown to a maximum of about 2,700%, and in the same year, some cryptocurrencies had achieved far higher growth than Bitcoin. Bitcoin set a record high of 19,891 US dollars on 17 December on the Bitfinex exchange. Some economists, famous investors, and finance professionals warned that rapidly increasing cryptocurrency prices could create a burst of the "bubble." When Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) started listing bitcoin futures in December, that allowed mainstream investors to short Bitcoin on a large scale. The period immediately before the crash, Bitcoin price reached its peak, and plunged about 46 percent, even though recovered quickly to 17,252 US dollars on 6 January 2018 on the Bitfinex.

Outbreak

The cryptocrash broke out with the revelation of the plan that prohibits trading of the cryptocurrencies by Park Sang-ki, the Attorney General for the South Korea in 12 January 2018; with this, Bitcoin price depreciated by 12 percent.[11] The second severe shock was the hacking incident of the Coincheck, Japan's largest cryptocurrency OTC market in 26 January. At the time, worth 530 million US dollars of NEM got stolen by the hacker, and the loss was the largest ever by an incident of theft, then for this reason, the Coincheck took an indefinite break from trading.[12] During the period from 26 January to 6 February, the price of Bitcoin drop out has halved, and reached rock bottom at 6,000 US dollars (Bitfinex). Additional negative news for the cryptocurrency market continued in the first quarter of 2018. For instance, Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.[13] The price remained low though the level slightly recovered in the first quarter of 2018.

See also

References

  1. ↑ NBCNews.com (2018-02-03). "Bitcoin loses more than half its value amid crypto crash". Retrieved 2018-04-11.
  2. ↑ The Globe and Mail (2018-02-13). "OMERS-affiliated Ethereum Capital offering pinched, but not pulled, following choppy markets and cryptocrash". Retrieved 2018-04-11.
  3. ↑ The Week UK (2018-01-17). "Crypto crash: bitcoin drops to lowest point since November". Retrieved 2018-04-11.
  4. ↑ Bloomberg View (2018-02-08). "Crypto Cynics Stand to Profit the Most". Retrieved 2018-04-11.
  5. ↑ Business Insider (2018-02-02). "ROUBINI: 'The Mother Of All Bubbles And Biggest Bubble in Human History Comes Down Crashing'". Retrieved 2018-04-11.
  6. ↑ CNBC (2018-01-16). "Crypto carnage: Bitcoin briefly dips below $10,000 on Coinbase, and ethereum crashes too". Retrieved 2018-04-11.
  7. ↑ Business Insider UK (2018-02-02). "CRYPTO CARNAGE: Bitcoin loses 15% before rebounding into positive territory". Retrieved 2018-04-11.
  8. ↑ Kaplan, Michael. "Bitcoin crash: This man lost his savings when cryptocurrencies plunged". CNNMoney. Retrieved 2018-09-28.
  9. 1 2 "Terms of Service Violation". www.bloomberg.com. Retrieved 2018-09-28.
  10. ↑ CryptoGlobe (2018-04-03). "Cryptocurrency Market Down 54% in Q1 2018, Losses Top $500 Billion". Retrieved 2018-04-11.
  11. ↑ CNBC (2018-01-11). "South Korea is talking down the idea a cryptocurrency trading ban is imminent". Retrieved 2018-04-11.
  12. ↑ The Wall Street Journal (2018-01-26). "Cryptocurrency Worth $530 Million Missing From Japanese Exchange". Retrieved 2018-04-11.
  13. ↑ Bloomberg (2018-03-27). "Twitter Joins Facebook, Google in Banning Crypto Coin Sale Ads". Retrieved 2018-04-11.
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