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18th of October 2018

Economy



Bitcoin price CRASH: Cryptocurrency suddenly falls and wipes out $13BILLION in MINUTES

BTC has experienced a sudden drop in its value after a stable few months of trading, as five percent was shaved off its price almost instantaneously.

Other leading cryptocurrencies, ripple and ethereum, were dragged down with it as the price plummet caused a ricochet effect on the whole cryptocurrency market.

The world’s leading cryptocurrency had entered a period of remarkable stability as the asset hit a 17-month volatility low in September.

But the steady spell appears to be over, with the digital asset taking a huge price hit causing $13billion to be lost in minutes, according to CoinDesk data.

The decentralised digital commodity’s price fell sharply to $6,125 (£4,629) but it did recover briefly to $6,200 (£4,686).

At the time of writing, one bitcoin is worth £4,696.

Short and sudden swings in bitcoin’s price are often attributed to trading “bots”, which initiate trades and cause a domino effect on the price.

So-called “whales” (holders of huge amounts of cryptocurrency) can also cause price fluctuations, as they buy and sell amounts so vast they impact the whole market rate.

The news comes after the International Monetary Fund (IMF) warned this week the bitcoin and blockchain boom facilitating the “rapid growth” of cryptocurrency assets could create “new vulnerabilities in the international financial system”.

In a key report published on Wednesday, the Fund said: “Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services.

“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”

Bitcoin’s receding price (down from extreme highs of more than £15,000 last year) is indicative of the cryptocurrency’s unpredictability, making it an uncertain form of investment.

The ebb in price in 2018 has been attributed to a lapse in trading volume since BTC’s peak at the end of 2017.

As a result of the reduced trading on cryptocurrency exchanges, businesses all over the world have been forced to lay off staff and cut costs.

Experts forecast the asset’s price has the potential for a continued bearish (downwards) trend.

Jon Ostler, UK CEO at finder.com said: “Cryptocurrency is currently a bearish market, with our BTC predictions for end of 2018 decreasing for the third consecutive month in a row.”

Official government bodies, such as the UK’s Treasury Committee and the US’s Security and Exchange Commission have yet to recognise crypto assets before universal regulation is agreed upon.

Mr Ostler said: “The issue of the pending ETF decision by the US Securities and Exchange Commission is still on our minds, with some citing the decision as the main indicator of short-term performance and anticipating it to affect the market for months to come.”

Blockbid COO, David Sapper, told express.co.uk: “I can see Bitcoin and other cryptocurrencies being recognised by the SEC or EU Securities Commission in the future.

“I do think this is a way off and more regulation regarding Bitcoin and cryptocurrencies will have to be implemented before we see this.”

On BTC’s volatile value and price fluctuations, Mr Sapper said: “It is still too early on for Bitcoin to have properly reached the point of having a stable price.

“There will continue to be fluctuations until more widespread commercial adoption occurs – as well as further regulation and implementation by financial institutions.”

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