A visual representation 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 wiped out on Monday, wiping about $ 170 billion from the entire cryptocurrency market.
The market cap or value of the cryptocurrency market was $ 959.53 billion at 12:10 a.m. Singapore time, down from $ 1.1 trillion a day earlier, according to Coinmarketcap.
Bitcoin, the largest cryptocurrency, fell more than 11% from the day before to $ 35,828.06 at around 12:15 a.m. Singapore time. Ether, the second largest, was down about 15% to $ 1,126.72.
The sell-off in cryptocurrencies comes after a massive rally and may indicate investor profit-taking. Bitcoin is still up more than 340% in the last 12 months and last week it hit a record high of just under $ 42,000.
Bitcoin’s resurgence has been attributed to a number of factors, including increased purchases from major institutional investors.
And it has also been compared to ‘digital gold’, a potential safe haven and a hedge against inflation. In a recent research note, JPMorgan said bitcoin could reach $ 146,000 in the long run as it competes with gold as an “alternative” currency. However, the investment bank strategists noted that bitcoin would need to become significantly less volatile to reach this price. Bitcoin is known for wild price swings.
But some bitcoin critics – such as David Rosenberg, economist and strategist at Rosenberg Research – have called bitcoin a bubble.
However, the long-term bullishness surrounding bitcoin remains. Last week, Social Capital’s Chamath Palihapitiya said bitcoin could top $ 100,000.
“It’s probably going to $ 100,000, then $ 150,000, then $ 200,000,” Palihapitiya told CNBC’s “Halftime Report.” “In what period? I don’t know. [Maybe] five or ten years, but that’s where it goes. “