Bitcoin’s January plunge, over $60 billion wiped off market cap
Bitcoin price analysis January:
- $60 billion wiped off market cap.
- The cryptocurrency dropped to as low as $9,627.89.
- Major sell offs amid fear of increased cryptocurrency regulation.
- Bitcoin has a history of performing badly in January.
January was a volatile month for Bitcoin, with over $60 billion wiped off its market cap.
The cryptocurrency was trading at around $13,412 at the beginning of the month, rising steadily to $17,135 by Jan 6, before trending downward ending the month trading at around the $10,000 level.
On Wednesday, Bitcoin dropped to a 2018 low of $9,627.89, a 28.2% decline compared to beginning of the month.
The broader cryptocurrency market suffered major losses in January amid fears of increased government regulations.
South Korea added new cryptocurrency trading regulations and other countries have expressed an interest in similarly ramping up regulation. France’s finance minister Bruno Le Maire called for new guidelines on the trading of tokens whilst China has outright blocked some domestic exchanges.
Bitcoin and other cryptocurrencies also received criticism from major business figures, such as Warren Buffet who told CNBC that digital currencies will “come to a bad ending”.
However, it should be noted that Bitcoin has a history of performing poorly in January. Between 2013 and 2017 the value of Bitcoin dropped every January except for once.
And it’s not the first time Bitcoin has plunged by more than a quarter in one month. In February 2014, years before Bitcoin’s incredible surge in value, it dropped by more than 36 percent.