The Dramatic Cryptocurrency Selloff Wiped off $200B in Two Days

cryptocurrency selloff

Cryptocurrencies are tumbling since hitting the peak on Jan 7 when the total crypto market capitalization had touched the level of $813 billion. However, the selloff intensified over the last two days, thanks to China and South Korea who announced to make tough regulations on cryptocurrency trading. Almost $200 billion has been wiped off the value of digital currencies in the last two days alone.

The total market capitalization currently hovers in the range of $450 billion, substantially lower from the Tuesday morning of $650 billion.

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Bitcoin, the largest digital currency based on market capitalization, also lost a major portion of its value during the latest selloff. Bitcoin market cap is standing close to $170 billion at the time of writing, down from $238 billion on Tuesday morning.

Ripple, Ethereum, Bitcoin cash and all other cryptocurrencies lost the major portion of their value in the last two days.

Ethereum’s market capitalization declined to $87 billion in Tuesday trade, considerably lower from an all-time high of $133 billion it hit two days ago.

Ripple XRP, which was already struggling before the latest selloff, has experienced a big blow in the last two days. Ripple is the most widely traded digital currency in South Korea. Therefore, uncertainty related to the potential ban has significantly impacted ripple’s value. Its market capitalization is standing around only $40 billion, compared to an all-time high of $141 billion on Jan 4.

The majority of other small cryptocurrencies are also under intense pressure.

Bitconnect was among the biggest losers. After declining more than 96%, the company behind the BitConnect has announced to close its exchange and lending platform. While BitConnect lending platform closed immediately after the announcement, the exchange platform will close within the next 5 days.

Analysts and market pundits expect more pressure on crypto markets in the coming days, as several countries are planning crackdown on cryptocurrency trading. China has already banned centralized trading system, while South Korean authorities are planning to make tougher regulations for cryptocurrency anonymous trading.  

Featured Image: twitter

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