It seems like the negative news in the cryptocurrency space keeps on coming. Recently, there was news that Google will be banning cryptocurrency related advertisements from June. This led to a crash in most of the cryptocurrencies. There was hardly any cryptocurrency which was insulated. This led to a loss of $ 60 billion in the overall cryptocurrency market cap. Also, Bitcoin fell from $ 9300 on the way to $ 7700. This is the reason why many of the investors are now not sure whether they should invest in cryptocurrencies or whether they should stay away from it.
Cryptocurrency Basket falling:
Bitcoin was not the lone cryptocurrency which fell. No matter, which cryptocurrency you look at like Ethereum, Ripple, Litecoin, all of them have fallen significantly in the past 24 hours as well.
If you look at the lows, you will realize that they are just 5% above from the lows which they created in the past 24 hours. The overall market cap is still down significantly.
Many of the experts think that the hype around cryptocurrencies is dying as well. This is due to the fact that they are not outperforming anymore. They are constantly falling as well. This is making the investors lose even more amount of money.
If the hype around cryptocurrencies falls, it will lead to squeezing of the retail investor base as well. Unless and until the institutional investors do not start investing in Bitcoin, it will become very difficult for Bitcoin as well as other cryptocurrencies to rise once again as well. This is one of the main reasons why people are now worried as to whether Bitcoin, as well as other cryptocurrencies, will rise once again or not.
With the weekend coming up, any kind of recovery is difficult. In the weekend, normally the prices stagnate or fall significantly. This is the reason why most of the investors think that the recovery is not on the cards at least in this week. Also, the negative news surrounding cryptocurrencies seems to be continuing as well. SEC is now likely to advise the registration of cryptocurrency exchanges with itself before operating in the country. This will significantly reduce the number of cryptocurrency exchanges till the applications are approved.
With $ 60 billion wiped out in cryptocurrency market cap, it remains to be seen how long the market will take in order to recover from this fall.
David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.