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Nearly $13 billion gets wiped off from the cryptomarkets as major currencies plunge


Nearly 13 billion gets wiped off from the cryptomarkets as major currencies plunge

Another bad news for the crypto sector came after the prices of major cryptocurrencies plunged on Thursday with around $13 billion of its valued getting wiped off in only a few hours.

On Thursday, the prices of Bitcoin fell nearly 5 per cent to $6,303 and XRP and Ethereum plunged over 10 percent, data from Coinmarketcap.com revealed. It was not unusual to see the prices of Bitcoin plunge more than others. It took just three hours to see nearly $13 billion of value being erased from the crypto market.

Recently financial authorities issued warnings about the rapid growth of virtual currencies and the potential threat to the economy.

“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,” the International Monetary Fund said in a recent report.

Many cryptocurrencies enthusiasts hoped 2018 would be a year that regulators warned up to the idea of professionalizing the trading of digital assets through new financial products like exchange-traded funds. But the US Securities and Exchange Commission has rejected several ETFs including a highly anticipated one planned by the Winklevoss twins. Other countries including China have come down hard on the virtual currencies. The year has also witnessed high-profile hacks on the cryptocurrency exchanges where hackers plundered the money out of the exchanges. Moreover, a number of scams also broke out that revealed the culprits who were carrying it out through the Initial Coin Offerings. These things meant that Bitcoin, XRP and Ethereum haven’t recovered to the record highs witnessed the previous year. On Thursday, Bitcoin was more than 68 percent off of its record high of $19,783.21 which was recorded in December last year.