In 24 hours, the price of Bitcoin against the US dollar has dropped. Coindesk reports that the price has plunged to more than 11 percent during the Asian trading hours. This price fall follows the 8 percent Bitcoin plunge that happened on the 1st of December.
This Bitcoin Price Plunge marks a recent decline for the largest cryptocurrency in the world. This price plunge continues to drag down other cryptocurrencies as well. This December has been a tough month for this virtual currency.
According to Coindesk, Bitcoin traded at $3,367 as of 1:30 am ET today Friday 7th of December, plunging 11.32 percent in over 24 hours. During this same 24 hour period, the prices of the top cryptocurrencies using market value, XRP and Ether also took a significant plunge.
Why Is This Happening?
Reports show that the cryptocurrency market is in distress. The financial technology consultancy director at Kapronasia, Zennon Kapron believes that the overall adverse sentiment towards cryptocurrency seems to be what is driving the crypto market to be in a common bearish trend.
He believes that the since the crypto-market is driven heavily by retailers, group sentiments are what drive the coin to take such massive plunges. Kapron thinks that if no positive drivers emerge, this cryptocurrency fall will continue in 2019.
The overall adverse sentiment towards cryptocurrency seems to be what is driving the crypto market to be in a common bearish trend.
Introducing A Bitcoin ETF
In related cryptocurrency news, the Security and Exchange Commission in the US updated their proposal approval process for a rule change. This process is for the allowance of a Bitcoin ETF which is a financial commodity that is listed on an exchange and tracks asset prices.
With ETFs, Investors do not need to purchase the asset. This ETF is a way for investors that are institutional to invest safely in cryptocurrency. These investors do not need exchanges to buy cryptocurrencies.
The VanEck SolidX Bitcoin Trust is the ETF in question, and it was created in a collaboration between Blockchain company SolidX and money management firm VanEck. The SEC wants to delay their decision and the last time a decision was postponed by the SEC, more than $9 billion were removed from Bitcoin’s value.
Generally, this year’s cryptocurrency prices haven’t been reasonable. The entire price market cap fell from its high which was 86.92 percent in January, according to Coinmarketcap data. Since then, 24-hour trading volumes have also declined to about 61.63 percent. Some Bitcoin investors despite the recent plunge in the price of cryptocurrency are enthusiastic about the future of Bitcoin.
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