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Bitcoin Bloodbath Nears Dot-Com Levels as Many Tokens Go to Zero

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Bitcoin’s meteoric rise last year had many observers calling it one of the biggest speculative manias in history. The cryptocurrency’s 2018 crash may help cement its place in the bubble record books.

Down 70 percent from its December high after sliding for a fourth straight day on Friday, Bitcoin is getting ever-closer to matching the Nasdaq Composite Index’s 78 percent peak-to-trough plunge after the U.S. dot-com bubble burst. Hundreds of other virtual coins have all but gone to zero -- following the same path as and other red-hot initial public offerings that flamed out in the early 2000s.



While Bitcoin has bounced back from bigger losses before, it’s far from clear that it can repeat the feat now that much of the world knows about cryptocurrencies and has made up their mind on whether to invest. Bulls point to the Nasdaq’s eventual recovery and say institutional investors represent a massive pool of potential cryptocurrency buyers, but regulatory and security concerns have so far kept most big money managers on the sidelines.

“You’ll have to see the market reverse before you see” institutions pile in, Peter Smith, chief executive officer of Blockchain Ltd., which introduced a crypto trading platform for professional investors on Thursday, said in an interview on Bloomberg Television.

Bitcoin declined as much as 4.2 percent to $5,791.19 on Friday, the lowest level since November, according to Bloomberg composite prices. It traded at $5,860 as of 8:52 a.m. in New York, down 59 percent for the year and heading for a second-quarter loss of 14 percent. Other coins including Ether and Litecoin slumped more, while the combined value of tokens tracked by declined to $236 billion. At the peak of crypto-mania, they were worth about $830 billion.

While it was difficult to find fresh catalysts for Bitcoin’s drop on Friday, hacks at two South Korean exchanges and a regulatory clampdown in Japan have weighed on sentiment in recent weeks. Regulators around the world have stepped up scrutiny of cryptocurrencies on concern that they’re a breeding ground for illicit activity including money laundering, market manipulation and fraud.

Lesser-known tokens have been hit the hardest. Dead Coins lists around 800 that are effectively worth nothing, while Coinopsy puts the tally at more than 1,000. Fewer than 4 percent of initial coin offerings raising from $50 million to $100 million were successful or promising, according to a March analysis from ICO advisory firm Satis Group.

Bitcoin may not go to zero, but it’s “very much” a bubble, Robert Shiller, the Nobel laureate economist whose warnings about dot-com mania proved prescient, said in an interview with Bloomberg Television’s Tom Keene on Tuesday. Last year’s Bitcoin surge was “not a rational response,” he said.



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lol how can they still call bitcoin a bubble after all the air has been let out ha ha ha, now is the perfect time to buy in.


Every market has cycles, cryptos are currently at a cycle low  ..... Like it or not crypto is the future ........ 


It may go a little lower ...... but then it won't and everyone will be saying "who could have predicted that" 

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Bitcoin skids to a 13-month low, nearing $5,000

  • The world's largest cryptocurrency is now down 18 percent this week, falling 5 percent Monday to its lowest level in more than a year.
  • Other major cryptocurrencies ethereum and XRP dropped 10 and 5 percent respectively.
  • Bitcoin is now down more than 30 percent since last Thanksgiving, when it gained house-hold name status and became a common topic around dinner tables.

The world's largest cryptocurrency dropped to its lowest level in more than a year on Monday.

Bitcoin hit a low of $5,165.24, bringing its losses to more than 18 percent in the past seven days and more than 62 percent this year, according to data from CoinDesk.

The digital currency began stumbling last week after months of relative calm. Bitcoin had been trading in the $6,400 range, a break from its volatility earlier this year, for the majority of October as the rest of global markets sold off. The cryptocurrency is now down more than 30 percent since last Thanksgiving.


Its epic rise started right after the American holiday last year, as the cryptocurrency gained its status as a household name and became a common topic around dinner tables. Bitcoin first topped $10,000 at the end of November last year and was worth almost $20,000 ahead of Christmas, mostly driven by retail investors.

The rapid run-up also coincided with the introduction of a bitcoin futures market in December. Peak prices lined up with the day the Chicago Mercantile Exchange, or CME, introduced bitcoin futures trading on Dec. 17. The Chicago Board Options exchange, or CBOE, opened a futures market a week earlier. Until futures existed it was extremely difficult, if not impossible, to bet on the decline of bitcoin prices.

On Monday, both of those bitcoin futures hit their lowest level since they were introduced. Bitcoin CME futures fell as low as $5,015 while bitcoin contracts on the CBOE dropped to $4,990.

Other major cryptocurrencies were mostly lower this week and have fared even worse than bitcoin this year. XRP, the second largest by market capitalization, fell 5 percent Monday while ether dropped more than 10 percent, according to data from Roughly $40 billion has been wiped off the entire cryptocurrency market capitalization in the past week, and was around $172 billion Monday.

Analysts attributed bitcoin's continued sell-off to technical levels and stop orders in the market kicking in after bitcoin fell below $6,000.

"The next logical level of support is at $5,000 but if that doesn't hold, the next logical support level isn't until $3,500," eToro analyst Mati Greenspan said in a note to clients Monday. "With all the falling prices lately, this definitely fits the definition of a buyers market."


Others pointed to a split in the cryptocurrency bitcoin cash. That digital currency split into two versions last week — "Bitcoin ABC" and "Bitcoin SV" — which analysts said added to uncertainty in broader crypto markets.

U.S. regulators made good on promises to regulate non-compliant cryptocurrency projects last week. The Securities and Exchange Commission announced its first civil penalties against crypto founders Friday as part of a bigger regulatory and legal crackdown aimed at abuses and outright fraud in the growing digital currency industry.

SEC Chairman Jay Clayton said earlier this year that all cryptocurrencies aside from bitcoin and ether constitute securities and "if it's a security, we're regulating it."

The cryptocurrency tumble also comes after fresh warnings from European Central Bank Executive Board member Benoit Coeure last week, according to a report from Bloomberg News. Coeure called bitcoin "a combination of a bubble, a Ponzi scheme, and an environmental disaster," at a Bank International Settlements in Basel.

"Bitcoin was an extremely clever idea. Sadly, not every clever idea is a good idea," Coeure said. "In more ways than one, bitcoin is the evil spawn of the financial crisis."|finance|headline|story|&par=yahoo&yptr=yahoo




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