As the governments across the globe closed ranks and threatened to impose the regulations on the trading, prices for cryptocurrency tumbled during last week. Since the last weeks of 2017, the majority of the digital currencies have hemorrhaged their gains when on the back of the trader enthusiasm and increased traction the entire market swelled to record valuations.
The biggest loser last week was the Cardano’s ADA, a cryptocurrency which rose about 1500% since the end of November. From the beginning of the last week, the currency lost about 38% of its value.
The other major losers in the cryptocurrency arena were Ripple and Ethereum but Ethereum has observed a gain of about 45% since the commencement of this year. On the other hand, China-based NEO has made some impressive gains and has risen by more than 95% since the starting of the year 2018 and remained unchanged during the course of last week.
The overall market capital of the cryptocurrencies observed a loss of more than USD 300 billion by last Wednesday and has been noted to have recovered to USD 564.5 billion since then. However, the market still remains uncertain if this could be attributed to a long-awaited correction in the prices of bitcoin. Spencer Bogart of Blockchain Capital argued that. “When we talk about a correction here, really, all we have done is go back to the all-time highs that we set six weeks ago,” and also said “So it hasn’t been much of a correction yet.”
In other news, a new milestone was passed by the cryptocurrency during last week when the 16,800th coin was noted to be mined which meant the only 1/5th of the Bitcoins which were planned to exist are left to be mined.
However, it must be noted that as governments across the world cited excessive speculation and overheated trading as justification to regulate bitcoin, a regulated bitcoin is set to become a possible outcome. China and South Korea threatened to impose regulations on trading of cryptocurrency at the beginning of the last week and was soon followed by Germany and France announcement to introduce a joint proposal to regulate bitcoin at the G20 summit later this year. Since regulations bring in more investors and accountability to malpractices at exchanges, it might not be such bad idea for bitcoin and cryptocurrencies.