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The cryptocurrency rout over the last 24 hours has caused widespread panic in the crypto community.
Over the last month, the price of Bitcoin has dropped over 50%.
Bitcoin briefly dipped below $10,000 per coin overnight, while nearly every other cryptocurrency in the top 100 by market capitalization is deep in the red. Concerns over regulations in Asia and other countries are part of the reason why prices are dropping.
But one of the biggest stories right now is about the collapse of BitConnect, a lending and exchange platform that shuttered its doors overnight.
Its token, BCC, plunged nearly 90% in 24 hours.
BCC has been compared to a Ponzi scheme from many critics, including Ethereum founder Vitalik Buterin.
BCC once called its currency a sure thing: "The moment you acquire BitConnect Coin it becomes an interest-bearing asset with 120% return per year. It is that simple."
That asset is now nearly worthless to investors around the globe given that the exchange has been shuttered.
In a statement released on its website, the exchange blamed negative press about its platform, cease and desist letters from North Carolina and Texas security regulators, and ongoing DDoS attacks.
Below is a recap of the top cryptocurrency prices at 3:30 p.m. EST.
- Bitcoin: $10,769.10, -5.56
- Ethereum: $959.35, -8.04%
- Ripple: $1.13, -8.02%
- Bitcoin Cash: $1,592.30, -14.58%
- Cardano: $0.580, -2.76%
Now that we know all of today's price movements, here's what has been moving these cryptocurrencies…
Cryptocurrency Markets Today
On Wednesday, the market capitalization of the global cryptocurrency sector slumped to $500.4 billion. Bitcoin comprised 36.2% of the total crypto market.
Today's price collapse didn't deliver too many top performers out of the top 50 cryptocurrencies by market capitalization. Only 10 cryptocurrencies out of the top 100 were in the green. SmartCash added 70.2%, Siacoin added 27.1%, Dent added 23.0%, TRON gained 22.8%, and Nexus gained 21.7%.
The worst performers from the top 50 largest cryptocurrencies by market capitalization included Ardor (down -29%), KuCoin Shares (down -23.5%), BitShares (down -21.5%), Bitcoin Cash (down -14.5%), NEM (down -12.5%), and Qtum (down -12.4%).
Can Bitcoin Prices Rebound?
Bitcoin appears to be stabilizing, an event that coincides with a report from Goldman Sachs Group (NYSE: GS) analyst Sheba Jafari.
The GS analyst called last night's slump into four figures a possible correction. Jafari said that the market would stabilize around $9,978 per coin, and then possibly turn around.
Bitcoin to $100,000?
Despite the sharp downturn, the bulls continue to roar. Kay Van-Petersen of Saxo Bank predicted that Bitcoin could fall in a range between $50,000 and $100,000 in 2018.
The analyst projects that institutional investors will become more engaged thanks to futures contracts in Chicago.
"First off, you could argue we have had a proper correction in Bitcoin, it has had a 50% pullback at one point, which is healthy. But we have still not seen the full effect of the futures contracts," Van-Petersen said in an interview with CNBC.
The call is far more bullish than Van-Petersen's previous prediction that it would take Bitcoin 10 years to reach that level.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.