A visual representation of the cryptocurrency Bitcoin in London, UK, November 20, 2018.
Jordan Mansfield | Getty Images News | Getty Images
Guangzhou, China-Bitcoin and other digital coins were hit hard on Monday, clearing approximately $170 billion from the entire cryptocurrency market.
According to Coinmarketcap data, at 1
Bitcoin is the largest cryptocurrency, at around 12:15 pm Singapore time, it fell 11% from the previous trading day to US$35,828.06. The second largest ether dropped by about 15% to $1,126.72.
The sell-off of cryptocurrencies occurred after a large-scale rebound, and may herald some profits for investors. Bitcoin has still risen by more than 340% in the past 12 months and hit a record high last week at just under $42,000.
Bitcoin’s recovery is due to many factors, including more purchases from large institutional investors.
And it has also been compared to “digital gold”, a potential safe-haven asset and a tool to hedge against inflation. JP Morgan Chase stated in a recent research report that in the long run, Bitcoin may reach $146,000 because it competes with gold as an “alternative” currency. The investment bank’s strategist pointed out that to reach this price, Bitcoin’s volatility must be greatly reduced. Bitcoin is known for crazy price fluctuations.
But some Bitcoin critics (such as David Rosenberg, an economist and strategist at Rosenberg Research) call Bitcoin a bubble.
However, the long-term bullishness surrounding Bitcoin still exists. Last week, Chamath Palihapitiya of Social Capital stated that Bitcoin may rise above $100,000.
Palihapitiya told CNBC’s “halftime report”: “It might cost $100,000, then $150,000, then $200,000. “When? I do not know. [Maybe] 5 or 10 years, but continue. “