Bitcoin’s deepening crash now rivals its worst-ever bear markets
●Virtual currencies being tracked show more than US$700 billion of value wiped out since market peaked
Bitcoin’s tumble worsened over the weekend, putting the 2018 crash within striking distance of the cryptocurrency’s worst-ever bear markets.
The crash has now entered the same league as Bitcoin’s 93 per cent plunge in 2011 and its 84 per cent rout from 2013 to 2015, during the collapse of Tokyo-based crypto exchange Mt Gox. In dollar terms, the damage this time around has been much bigger: Virtual currencies tracked by CoinMarketCap.com have lost more than US$700 billion of value since the market peaked.
While bulls are betting that demand from institutional investors will spark a rally, most big money managers have stayed on the sidelines amid concerns over exchange security, market manipulation and regulatory risk.
The sell-off is “really testing the faith of a few key players”, Ryan Rabaglia, Hong Kong-based head trader at OSL, a cryptocurrency dealing firm, said in a phone interview. “I do think for this next push, we are going to need that institutional money to come in finally. To lend that support and help with growth.”