What's Behind the Latest Cryptocurrency Price Slump?

The most recent couple of long stretches of 2017 appeared to be unrealistic for some computerized monetary standards. Bitcoin took off consistently, beating out at about $20,000 per coin at its most astounding point. So also, up-and-comer swell developed by about 40 times in an incentive throughout 2017, completing at more than $3 per token. More speculators jumped on board the advanced cash prepare with an end goal to profit.

However, now, in the initial couple of long stretches of 2018, we've seen a considerable lot of the best advanced monetary forms affected by an extreme droop. What is behind the current value drops, and will they keep on worsening?

Bitcoin Falls to Roughly $10,000

Bitcoin's cost has fallen by twofold digit rates lately, dipping under $12,000 out of the blue since early-December, as indicated by Tech Crunch. Ethereum, the second-biggest advanced cash by showcase top, fell by over 20% on January sixteenth, while swell is drifting in the low $1.20s.

It's not only the biggest computerized monetary forms that have been affected, either. As indicated by coinmarketcap.com, the 100 most elevated esteemed computerized monetary standards are largely as the week progressed, with the exception of one called Tether.

Changes Are a Mystery
It's difficult to say exactly what has driven the price of these cryptocurrencies downward. It could have something to do with China's preparation to block domestic internet users from accessing international digital currency exchanges. This occurred after the country banned Chinese exchanges and ICOs late in 2017.

Reports have also suggested that South Korea is going to regulate cryptocurrencies in the near future as well. (See more: South Korea to Ban Anonymous Cryptocurrency Trading.)

As with most price fluctuations in the cryptocurrency world, the exact causes are difficult to pinpoint. The entire industry is known for its extreme volatility, and because a large number of cryptocurrency investors are not mainstream investors, they react to news shared via sometimes-unorthodox means, including social media and Reddit.

It's also entirely possible that the recent price slump is simply due to natural shifts in the digital currency market. Ironically, some analysts had predicted major gains this week, owing to the fact that Wall Street employees received year-end bonuses over the weekend. (See also: Wall Street Bonuses Could Fuel Huge Crypto Purchases and Price Spikes.)

Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions.