Infighting and Regulatory Pressure Pushing Crypto Market Back to 2017

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The price of bitcoin dropped sharply overnight, briefly dipping below $5,000 per coin as a brutal sell-off gripping the cryptocurrency market deepened.

Bitcoin was trading yesterday at US$4,354.20, its lowest level on the Bitstamp exchange since October a year ago. It seems the trend turned bearish for almost every cryptocurrency, except for USD Coin, QASH and Dai showing minor increase. Digital assets have now lost nearly $700 billion of market value since crypto-mania peaked in January, according to CoinMarketCap.com.

The computations get progressively harder to crack the more bitcoins there are on the market.

"From our perspective, talking to our institutional customers, there are a lot of vintage 2017 Bitcoin funds that are clearly underwater for the year", wrote Paul Chou, the CEO of trading platform LedgerX, which offered the first bitcoin options and swaps last year.

The still-nascent sector is not completely transparent and analysts have struggled to understand what precisely prompted the latest drop.

"It's hardly the spirit in which many would want crypto to be used but, I'm afraid, it is what it is, and the very nature of trading means we will see this cycle over and over again".

Over the coming days and weeks, the market's price movements will give investors increased clarity as to whether or not this is simply capitulation or a sign of what is to come in 2019.

Ethereum isn't close to taking back the second spot behind Bitcoin.

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Bitcoin Cash ABC [IOU] can be bought or sold on the following cryptocurrency exchanges: Poloniex.

The cryptocurrency market has failed to recover after last week's market collapse, where the collective market cap dropped from $220 billion to under $185 billion in a matter of days.

The cryptocurrency industry has now lost more than $660bn in value from a January peak, according to data from CoinMarketCap.com.

Overall, the value of bitcoin is down 30pc since Thanksgiving past year and down 76.5pc from its all-time high.

On one side is Ver and Bitcoin Cash ABC, the ABC standing for "Adjustable Blocksize Cap". Ethereum (ETH) is on an absolute free fall in the last one week losing 30% of its valuation.

The most glaring exception to this general trend of increased prices is Bitcoin Cash, which as a result of its hard fork, continue to reel under bear market ramifications and is trading now at 383.3 United States dollars.

Both have been ordered to repay millions of dollars in initial coin offering revenues to investors, as well as pay a civil money penalty of $250,000 (£195,000). If there is a break below $4,400, then bitcoin price will most likely nosedive towards the $4,000 handle in the near term. The current one-day support is at $4,616.8 with the downtrend bringing the price down in two phases: $8,193-$6,493.4 and $6,493.43 -$4,621. Meanwhile, the near-term support is seen at $3.85 and resistance at $4.80.

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