Cryptocurrency Market Cap Drops to $400 BillionFeb 05, 2018 at 19:05
Cryptocurrency markets suffered another round of price drops as 97 of the top 100 cryptocurrencies have posted 24-hour declines against the US dollar.
Bitcoin led the poor performance with its decline to an 80-day low as other top coins fared equally as poorly. All in all, the cryptocurrency market cap declined by $52 billion to $280 Billion equivalent to a single-day pullback of nearly 13 percent.
Bitcoin Value Drops to 80-Day Low
Bitcoin price was reduced by another 12 percent, bringing the most prominent cryptocurrency to an 80-day low. At present, its price is valued at just $7,660, which translates into a $130 billion market cap.
Despite the poor performance of the markets, CCN reported that the impending launch of stock brokerage app Robinhood’s cryptocurrency trading platform could breathe new life into the markets, or at the very least speed its recovery.
With the recent developments, Fintech platforms such as Robinhood Crypto and Square’s Cash App are believed to be crucial in the future as an increasing number of banks and other financial institutions are banning their customers from using their credit cards to purchase cryptocurrencies.
Ethereum Price Sinks Below $800
Meanwhile, Ethereum’s price has also tracked with Bitcoin’s decline contrary to what some investors projected before that the market downturn would present Ethereum with the opportunity to achieve the “flippening” by surpassing Bitcoin’s market cap and becoming the largest cryptocurrency.
On Monday, the Ethereum price sunk below the $800 mark and was trading at $772 on Bitfinex, a single-day decline of 13 percent leaving Ethereum with a $75.8 billion market cap.
Altcoin Markets Plunge
On the whole, altcoins experienced larger declines than Bitcoin, demonstrating that diversifying into altcoins will not necessarily provide investors with a hedge against major market declines.
Both the Ripple price and Bitcoin Cash price declined by 13 percent, reducing the third and fourth largest cryptocurrencies to present values of $0.75 and $1,017, respectively.
On the other hand, fifth ranked Cardano posted the worst performance of any top 10 cryptocurrenecy as it plunged 18 percent to $0.34. EOS and Litecoin, meanwhile, returned single-day declines of 12 percent.
With only a nine percent decline for the day, top 8 cryptocurrency Stellar had the best performance from any cryptocurrency ranked in the top 50, excluding the USD-pegged Tether.
NEO and NEM also rounded out the top 10 with 24-hour declines of 14 percent and 17 percent, respectively, reducing their prices to $95 and $0.49.