A visual representation of the Bitcoin cryptocurrency on November 20, 2018 in London, England.
Jordan Mansfield | Getty Images News | Getty Images
GUANGZHOU, China – Bitcoin and other digital currencies were delivered on Monday, wiping out about $ 170 billion from the entire cryptocurrency market.
The market capitalization or market value of cryptocurrencies was $ 959.53 billion at 12:10 Singapore time, down from $ 1.1 trillion a day earlier, according to Coinmarketcap.
Bitcoin, the largest cryptocurrency, fell more than 11% from a day earlier to $ 35,828.06 around 12:15 Singapore time. Ether, the second largest, fell about 15 percent to $ 1,126.72.
Selling in cryptocurrencies comes after a huge rally and may signal some profits from investors. Bitcoin is still growing at over 340% in the last 12 months, and last week reached an all-time high of just under $ 42,000.
The renaissance of Bitcoin has been attributed to a number of factors, including more buying from large institutional investors.
And it has also been likened to “digital gold”, a potential safe haven asset and a hedge against inflation. In a recent research note, JPMorgan said bitcoin could reach $ 146,000 in the long run as it competes with gold as an “alternative” currency. Investment bank strategists have noted, however, that bitcoin should become substantially less volatile to reach this price. Bitcoin is known for wild price fluctuations.
But some bitcoin critics – such as David Rosenberg, an economist and strategist at Rosenberg Research – have called bitcoin a bubble.
However, the long-term growth of bitcoin remains. Last week, Chamath Palihapitiya of Social Capital said bitcoin could exceed $ 100,000.
“It will probably reach $ 100,000, then $ 150,000, then $ 200,000,” Palihapitiya told CNBC’s “Break Report.” “In what period? I do not know. [Maybe] five or 10 years, but it goes there. “