Cryptocurrency prices, with Bitcoin at the helm, rose dramatically from last August through the end of the year. Ever since December of 2017, all cryptocurrency prices have steadily fell, becoming less and less, something like a drastically slow pop of the cryptocurrency speculative bubble.
Investors still don’t feel confident about trading in cryptocurrency, even though the lot of them has great potential, to say the least. Within the last 24 hours, from 1:30 a.m. Eastern Standard Time on Thursday, February 1st, through this morning at the same time, more than 100 billion dollars’ worth of cryptocurrency was traded away (all values herein are reported in United States Dollars).
The Collective Market Capitalization Of Cryptocurrencies Is Steadily Declining
Market capitalization, often shortened to “market cap,” is defined as the total dollar value of all stocks, bonds, or whatever financial instrument being discussed outstanding – in other words, how much money the world of investors have placed into a class of assets.
The market cap of all cryptocurrencies, ranging from Dogecoin to the father of all modern cryptocurrencies in Bitcoin, was measured at $405,241,490,138 at 1:30 Eastern Standard time on Thursday, February 1st. In the 24 hours following that point in time, $100 billion was moved out of various cryptocurrencies.
What’s Causing The Lack Of Confidence In Cryptocurrencies On Behalf Of Investors?
Our world’s various financial marketshare understood quite well, because they’ve been around for so long, and have benefited from researchers hailing from a variety of backgrounds conducting studies on what drives what in the world of finance.
The same can’t be said for the realm of cryptocurrency, as the first such digital currency, Bitcoin, wasn’t created until January of 2009. As such, the collective body of research existing regarding cryptocurrencies is lacking, to say the least.
This goes to say that nobody really knows what’s causing the absence of confidence in the world of cryptocurrency. However, many experts feel that strict regulatory control is looming on the immediate horizon for countries around the world, which will make it harder to trade and monitor cryptocurrency prices, market cap, and other meaningful information regarding the industry.
Many people feel that a crypto exchange called Bitfinex is responsible for the price manipulation of Bitcoin over the past few years, making overall investor confidence as low as it is right now.
Bitcoin dropped to below $9,000 per coin on Thursday.