Visual production of the cryptocurrency Bitcoin on November 20, 2018 in London, England.
Jordan Mansfield | Getty Images News | Getty Images
GUANGZHOU, China – Bitcoin and other digital coins went bankrupt on Monday removing some $ 170 billion from the entire cryptocurrency market.
The market capitalization or market value of cryptocurrency was $ 959.53 billion at 12:10 pm in Singapore, down from $ 1.1 trillion a day earlier, according to Coinmarketcap.
Bitcoin, the largest cryptocurrency, fell more than 11% from an earlier day to $ 35,828.06, at around 12:15 pm in Singapore time. Ether, the second largest, was down about 15% to $ 1,126.72.
The sale in cryptocurrencies comes after a large accumulation and may indicate some return from investors. Bitcoin is still up above 340% in the last 12-months and last week hit a record high of just under $ 42,000.
Bitcoin’s revival has been driven by a number of factors, including increased purchases from large institutional investors.
And it has also been like “digital gold,” a safe-haven and hedge fund against inflation. In a recent research note, JPMorgan said bitcoin could hit $ 146,000 in the long run because it competes with gold as an “other” currency. Investment bank strategists noted, however, that bitcoin needed to be much more volatile to reach this price. Bitcoin is notorious for wild price movements.
But some bitcoin critics – such as David Rosenberg, an economist and strategist at Rosenberg Research – have called bitcoin.
Long-term bullishness around bitcoin remains though. Last week, Chamath Palihapitiya at Capital Market said bitcoin could go above $ 100,000.
“It’s probably going to be $ 100,000, then $ 150,000, then $ 200,000,” Palihapitiya told CNBC’s “Halftime Report”. “What time? I don’t know. [Maybe] five or 10 years, but it’s going there. “