A visual representation of cryptocurrency bitcoin on November 20, 2018 in London, England.
Jordan Mansfield | Getty Image News | Getty Images
Guangzhou, China – Bitcoin and other digital coins were erased from the entire cryptocurrency market by $ 170 billion on Monday.
According to Coinmarketcap, the market capitalization or value of the cryptocurrency market was $ 9510.53 billion as of Singapore time.
Bitcoin, the largest cryptocurrency, fell more than 11% to $ 35,828.06 a day earlier, at 12:15 pm Singapore time. Ether, the second largest, was around 15% to $ 1,126.72.
The sell-off in cryptocurrency comes after a huge rally and perhaps indicates some profit from investors. Bitcoin is still up over 340% in the last 12 months and hit an all-time high, down $ 42,000 last week.
The resurgence of bitcoin has been attributed to a number of factors including over-buying from many institutional investors.
And it has been compared to “digital gold”, a potentially safe-asset and a hedge against inflation. JPMorgan said in a recent research note that bitcoin can reach $ 146,000 in the long term as it competes with gold as an “alternative” currency. However, investment bank strategists said that bitcoin would have to be significantly less volatile to reach this value. Bitcoin is known for wild price swings.
But some bitcoin critics – such as David Rosenberg, economist and strategist at Rosenberg Research – have called bitcoin a bubble.
However, there is a long-term rally around bitcoin. Last week, Social Capital’s Chamath Palihipitiya said that bitcoin could go above $ 100,000.
“It’s probably $ 100,000, then $ 150,000, then $ 200,000,” Palihapitia told CNBC’s “Halftime Report”. “In what period? I don’t know. [Maybe] Five or 10 years, but it’s getting there. “