The crypto currency correction may have just begun. The cryptocurrency madness has finally hit a pause. After months of unprecedented growth, cryptocurrency markets are finally catching their breaths after almost every currency posted double digit losses in the last 48 hours.
According to coinmarketcap.com, a website that tracks the total market capitalization of Cryptocurrencies, Bitcoin is down 16.5% over the last few days and Ethereum is down 23.5%. Just a look at the website can tell you how bad things are going in the market.
The cryptocurrency market on a whole lost over $38 Billion after the total market cap came crashing down to $142 Billion from its all time high of $180 Billion. The crash is bound to make a noticeable dent in the market, which means it is going to be quite hard to forget for those involved in it.
Of course, in context to how things were four or five months ago, the market is still booming. While it still considered a big crash, it left Bitcoin–the biggest player in the market–at double the price it was then. Still, the $38 Billion is no joke. It represents years of in the US stock market, wiped out in a matter of hours.
As to why it happened, it is anybody’s guess. But there are a few reasons that have contributed to this debacle. First there is the Chinese ban on ICO’s that the government dropped a few days ago citing that they have “seriously disrupted the economic and financial order”.
Another possibility is that the market simply overheated. The crash started right as Bitcoin hit its all time high of a few dollars under $5,000. Meaning– this may be a natural cool down that is correcting the market that just went bonkers the past few months.