Bitcoin’s deepening crash now rivals its worst-ever bear markets

PUBLISHED : Monday, 26 November, 2018, 2:07pm
UPDATED : Monday, 26 November, 2018, 2:09pm

Bitcoin’s tumble worsened over the weekend, putting the 2018 crash within striking distance of the cryptocurrency’s worst-ever bear markets.

The virtual currency, conceived just over a decade ago, fell as low as US$3,475 on Sunday, Bitstamp prices show. It was trading at US$3,949 as of 11.23am in Hong Kong, according to Bloomberg composite pricing. That’s 7.3 per cent below its level at 5pm New York time on Friday, and about 79 per cent below its closing peak in December.

The great cryptocurrency crash of 2018 may not be over

The crash has now entered the same league as Bitcoin’s 93 per cent plunge in 2011 and its 84 per cent rout from 2013 to 2015, during the collapse of Tokyo-based crypto exchange Mt Gox. In dollar terms, the damage this time around has been much bigger: Virtual currencies tracked by have lost more than US$700 billion of value since the market peaked.

Cryptocurrency miners take cover as bitcoin prices dive

While bulls are betting that demand from institutional investors will spark a rally, most big money managers have stayed on the sidelines amid concerns over exchange security, market manipulation and regulatory risk.

The sell-off is “really testing the faith of a few key players”, Ryan Rabaglia, Hong Kong-based head trader at OSL, a cryptocurrency dealing firm, said in a phone interview. “I do think for this next push, we are going to need that institutional money to come in finally. To lend that support and help with growth.”