Bitcoin Price Crashes and Cryptocurrency Market Dips by $12 Billion

Bitcoin has lost half of its value in 2018, while trading on cryptocurrency exchanges has fallen by 80%

On Wednesday this week, the bitcoin price dropped by around five per cent to below $7,000 while the cryptocurrency market dipped by $12 billion on the same day. Currently, the bitcoin price stands at $6,414 as of September 8th, 2018, and seems to be on a downward trend based on CoinMarketCap stats.

Other cryptos also dipped on the same day, with Ether dropping below the $300 mark. ETH is now trading at $216.

The crash also caused the market capitalization of the crypto market to drop significantly to the current cap of $203.6B compared to a market cap of approximately $222B on Wednesday. The market cap has dropped from more than $800B in early January this year.

In August 2018, cryptocurrencies fell below $200 billion for the first time in 2018. The current drop in this market offers potential investors another opportunity to buy Bitcoin ahead of the expected rise to $20,000 at the year-end.

Despite the drop in Bitcoin’s price, the market dominance of cryptocurrency has been steadily on the rise and now stands at 54.8 percent.


Bitcoin Diamond’s Price Grows Significantly

As other cryptocurrencies were experiencing a dip on Wednesday, Bitcoin Diamond’s price grew by 110 per cent according to CoinTelegraph. The coin’s price has since been fluctuating and now stands at $1.96.

The spike could have been attributed to Binance’s decision to open deposits and withdrawals for Bitcoin Diamond(BCD). Binance is one of the largest exchanges in the world by trade volumes.

On the other hand, Bitcoin Gold’s price dropped by 4.6 percent and its price currently stands at $19.06. Bitcoin Gold(BTG) will be delisted from the crypto exchange, Bittrex, by mid this month after $18 million in the crypto was stolen in May.

Major altcoins like Ripple, Bitcoin Cash, and EOS all fell 11 per cent, 10.2 per cent, and 10.9 percent respectively. Currently, the prices of these coins stand at $0.29, $506.13, and $5.06 in that order.


The Effect

According to Bloomberg;

“Bitcoin has lost half of its value in 2018, while trading on cryptocurrency exchanges has fallen by 80 per cent.”

This drop in trading volumes has seen exchanges such as Kraken let go of 57 employees.

The bitcoin price has dropped to nearly 67 percent since December last year while cryptocurrency hedge funds are down by almost 50 per cent.

At the same time, financial services company Goldman Sachs is reportedly withdrawing its plans to create a crypto trading desk.