Cryptocurrencies took a dive on Friday with Bitcoin falling as much as 23% early morning and other altcoins seeing similar losses down at least 20%.
The currencies have had a buoyant run but hit a wall on Friday as currencies dropped precipitously - the highest percentage loss for bitcoin this year. The decline saw more than $4,000 wiped from Bitcoin during the day.
The total estimated value of the crypto market fell to as low as $480bn, according to industry website, Coinmarketcap, having neared $650bn just a day earlier.
Altcoin Ripple saw its price spike 40% in 24 hours; it was trading at around the $1.15 level on Thursday but travelled south on Friday down to $1.13.
Reversal of fortune
What’s causing the reversal of fortunes is a guessing game for industry watchers. Charles Hayter, founder and chief executive of industry website Cryptocompare, in London was quoted in Reuters saying: “A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes.”
Here’s a round up of where each currency stood on Capital.com CFDs on Cryptocurrencies table at 16:38 GMT.
- Bitcoin EUR fell close to 20% at €10,371.
- Bitcoin down 20% at $15,584
- Ethereum dropped 23% at $644
- Litecoin EUR down 25% at €249
- Litecoin down 25% $302
- Ripple EUR down 20% €0.92
- Ripple down 20% $1.13