Bitcoin is crushed and loses 38.10% of its value in seven days. Ethereum and Ripple are also crushed, losing 43.23% and 48.14% respectively over the same period – see Table 1.

Seven-day price change for major cryptocurrencies

Cryptocurrency % 7d
Bitcoin -38.10
ether -43.23
Ripple -48.14

Source: Coinmarketcap.com 02/05/2018 at 2:30 p.m.

Other cryptocurrencies have also followed – see Table 2.

Table 2

Number of cryptocurrencies that advanced / declined in the top 100 ranks

Cryptocurrencies forward / backward number
Ahead 1
Decile 99

Source: Coinmarketcap.com 02/05/2018 at 2:30 p.m.

Who Knocked Down the Cryptocurrency Markets? Hard to say. It appears that the cryptocurrency markets were in a bubble that was ripe to burst.

[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don’t own any Bitcoin.]

Still, big banks can have something to do with the bubble growing bigger and the outbreak getting worse than it could have been.

There was a time when Wall Street and major banks gave tailwinds to Bitcoin, Ripple, Ethereum, and other cryptocurrencies. That was in the last quarter of 2017 when Wall Street began to recognize Bitcoin as an investment and put in place the vehicles and mechanisms for wider market participation in it. Like CME’s introduction of Bitcoin futures.

Meanwhile, big banks provided the liquidity for such broad participation by allowing investors to use their credit cards to pay for cryptocurrency purchases – and growing the cryptocurrency bubble.

How many investors bought Bitcoin with their credit cards? 18.15%.

This is the result of a recently published investor survey by LendEDU Bitcoin. In particular, 22.13% of investors who funded their Bitcoin purchases with credit cards did not pay off their credit card balances after purchasing Bitcoin.

Now big banks are cutting off liquidity for the cryptocurrency markets when they need it most. and maybe turn a cryptocurrency correction into a crash.

Matthew Schutte, communications director, Holo doesn’t see things that way. “It didn’t take any collusion between Wall Street firms or banks to burst the Bitcoin bubble. Of course, it didn’t help when research surfaced indicating that there is little chance that Bitcoin will be lost thanks to transaction fees Money replaced for normal exchange. ” The tens of dollars and settlement times that work well … for anyone willing to watch a Netflix show while waiting for their payment to be made. “

To be fair, banks have legitimate concerns about the ability of cryptocurrency investors to pay off their credit card balances after the sharp drop in cryptocurrency prices.

But they shouldn’t have lent investors money to buy such risky assets and make the bubble worse than it could have been.

Gallery: 2018 30 Under 30: Consumer Technology

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