UK Edition
Bitcoin hit by $184bn fall in market value since January, amid growing cryptocurrency doubts
Bitcoin has shed $184bn in market value since January, according to new figures which reflect mounting investor uncertainty over the future of digital currencies.
Bitcoin, the world's most widely traded crypto-currency, plunged sharply again on Thursday, taking the total fall over the previous 24 hours to 12.5pc. Bitcoin was trading at around $6409 on Thursday morning, after sliding beneath $7000 on Wednesday.
The value of all the world's Bitcoins currently stands at $110 billion, according to figures from CoinMarketcap.com. They hit a 2018 peak of $294 billion on January 6 this year.
The rapid sell-off comes amid continuing fears over the lack of regulation in the cryptocurrency market and the risk of investors being defrauded.
Digital coins have gained increasing attention after an explosive rally in 2017. Supporters of Bitcoin and other cryptocurrencies such as Ethereum and Litecoin have argued that online coins will revolutionise money.
They say the underlying Blockchain technology that facilitates transactions promises anonymity, security and immutability for users.
According to digital coin price monitor CoinMarketCap, the total value of all cryptocurrencies hit a peak market capitalisation in January 2018 of approximately $830bn. The equivalent figure today is about $200bn.
On Wednesday, Business Insider reported that investment bank Goldman Sachs was shelving plans to open a trading desk for cryptocurrencies given the regulatory uncertainty around them.
Though the bank could not confirm the reports, it said in a statement: “In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reach a conclusion on the scope of our digital asset offering.”
The big fall in cryptocurrency valuations has come as finance ministers from across the European Union prepare to meet in Vienna, Austria on Friday to discuss the bloc’s stance towards regulation.
According to a report prepared for the European politicians by Bruegel, a Brussels-based think tank, EU members should adopt a common rule book on the regulation and incorporation of cryptocurrencies.