Prospects for the growth of the cryptocurrency market decline further, as the market capitalization of blockchain based currencies, reach a yearly low of $196 billion after the wipeout deepened to $640 billion.
The decline in Cryptocurrency Market
The recent decline in the cryptocurrency market touched the ten months low. According to Coinbase the decline in significant cryptocurrency values reached the double-digit on Saturday. Bitcoin, the dominant digital currency witnessed a 12.4% decline in value while Ethereurm, Ripple and Bitcoin Cash saw a decrease of 20.5%, 13.3%, and 20.2% respectively.
Reasons for Decline in Value of Digital Currencies
The crypto bubble has finally begun to burst now for many reasons. As far as the recent decline of Sunday, September 9 is concerned then it is said to be for many reasons.
The US regulators suspended the trade of Bitcoin Tracker One and Ether Tracker One, until September 20. Both these financial products that offer to track the prices of cryptocurrency are listed at Nasdaq exchange in Stockholm.
Further, the market prospects of digital currencies in the recent weeks have not been encouraging so far. According to reports, the market has faced a decline from four out of five last weeks. The market capitalization for digital currencies is likely to hit the low of $190 billion.
The decline in the value of cryptocurrency market capitalization is due to the concern that broader adoption of digital assets may take longer than expected.
Earlier in August the cryptocurrency market had struggled to maintain the market capitalization after US exchange had rejected Bitcoin-Exchange traded funds proposal.
Till now, mostly these are the actions of stock exchanges or fears from regulators which are causing volatility in cryptocurrency market- Like, in January, Bitcoin price had dropped amidst speculations in Asian markets.
A Reported Lack of Interest from Goldman Sachs
The recent drop in market capitalization of digital currencies was also followed by reports that Goldman Sachs was holding or might be pulling back from setting up a crypto trading desk. Goldman Sachs has been one of the rare institutes which have shown interest in cryptocurrencies; it had also reportedly funded a Bitcoin-related startup circle in 2015.
Future Prospects for the Value of Cryptocurrency
The digital currency Etherum has been one of the worst affectees of the recent decline in market value. According to media reports, Etherum co-founder Vitalik Buterin believes that gone are the days when there was 1000x increase in the value of digital currencies.
He was of the opinion that ceiling for the blockchain space was in sight and every average educated person knew about it, so there were no chances for a high growth that was witnessed in 2017.