Published: Tue, November 20, 2018
Money | By Bruce West

Crypto Investors Who Bought Bitcoin at $1,000 are Now Starting to Sell

Crypto Investors Who Bought Bitcoin at $1,000 are Now Starting to Sell

Bitcoin tumbled below US$4,225 to a 13-month low, before regaining some ground.

On a curious note, while bitcoin has fallen some $14,000 since its late-December 2017 high just below the $20,000 mark, the current price, around $5,000, is still roughly five times higher than January 2017 levels of around $1,000. At the time of writing, XRP now sits above Ethereum by market capitalisation as Stellar now sits above Bitcoin Cash.

Ripple, a San Francisco-based blockchain firm, is behind the payments-focused cryptocurrency and has been the main reason behind XRP's recent rise.

Other cryptocurrencies have also declined in the past days. Deposits and withdrawals of both BCH hard forks remain frozen on Kraken (like the rest of the exchanges) until the two chains stabilize.

The general crypto market purge which started last Wednesday has seen more than $70 billion leave the space in less than a week.

He added that another "contributing factor is the selloff in tech stocks, which could be having a spillover effect into crypto markets".

Curiously, Bitcoin has been well-known to rally during November - a trend which has unfailingly played out over the last eight years - but last week saw a largely inexplicable slump in the days before the Bitcoin Cash fork on November 15.

Traders had been hoping to get a big boost with the approval by the US Securities and Exchange Commission (SEC) of a bitcoin exchange-traded fund (ETF). At present Bitcoin Cash is trading at $219 following a 19% drop on Tuesday.

"The selloff is related to enforcement, which is nearly certainly underway", said Justin Litchfield, chief technology officer at ProChain Capital. Airfox and Paragon Coin agreed to pay civil penalties for running token sales a year ago without registering them as securities offerings.

"...it seems likely that a lot of what's going on now is ICOs trying to liquidate all their cryptocurrency for cash to make off with the goods before the SEC comes down on them", he said.

The crypto currency meltdown has finally towered upon us all.

If the negative sentiment from 2018 continues into 2019, it wouldn't be surprising for the crypto market to bottom out in the first half of the new year.

Although Bitcoin Cash peacefully split off from bitcoin, with bitcoin continuing on its merry way, the problem with the Bitcoin Cash split is that it's a battle for who controls Bitcoin Cash and that continues to cause chaos in the markets.

"Though the two are not the flawless comparison I do think it's important to note and keep in mind". We have warned over the past weeks that the cryptocurrency market has been displaying classic breakout potential with a once volatile asset trapped in ultra-tight trading ranges on very low volume.

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