The biggest and most valuable cryptocurrency, Bitcoin, has lost over half its value since it destroyed the $20,000 barrier in mid-December.
- The world’s largest cryptocurrency was trading at $9,199.59 at about 10:34 a.m. ET on Wednesday, according to CoinDesk.
- The last time bitcoin fell below the $10,000 mark was November 30.
- More than $30 billion was shaved off the cryptocurrency’s market value in the last 24 hours.
The world’s largest cryptocurrency was trading at $9,199.59 at about 10:34 a.m. ET on Wednesday, and was down almost 19 percent in the last 24 hours, according to CoinDesk data. CoinDesk tracks prices from cryptocurrency exchanges Bitstamp, Coinbase, itBit and Bitfinex.
The last time bitcoin fell below the $10,000 mark was November 30. The red-hot digital asset soared to a record high of $19,343 last month, but has since been on a gradual decline. At its current price, it is now down 52 percent from that all-time high.
More than $30 billion was shaved off the cryptocurrency’s market value in the last 24 hours.
On Tuesday, an official from the People’s Bank of China said the country’s centralized virtual currency trade needs to end, Reuters reported.
National and local authorities should ban venues that provide centralized trading of virtual currencies, including the largest one, bitcoin, PBOC Vice Governor Pan Gongsheng was quoted as saying.
“The financial work conference clearly called for limiting ‘innovations’ that deviate from the need of the real economy and escape regulation,” Pan said, according to a memo quoted by Reuters.
There have been reports that an increasing number of people were taking out mortgages to invest in bitcoin when it peaked at $20,000.
The collective market capitalization of all cryptocurrencies has dropped by more than $200 billion since Tuesday.
“If people are going to day trade cryptocurrencies, and they don’t know what they are going, they’re going to get slaughtered,” said Dan Novaes, co-founder and CEO of Current.
His company, whose initial investors include billionaire Mark Cuban, provides an all-in-one platform for popular streaming services such as Spotify and SoundCloud. It also offers users a way to earn cryptocurrency to reduce or eliminate subscription costs.
In addition to running a business based on blockchain, the online ledger technology underlying bitcoin and other digital coins, Novaes said he’s an investor who is “long cryptocurrencies.”
“I believe in the technology behind it, and we’re in the middle of the biggest wealth transfer in history,” he said on CNBC’s “Squawk Box.” “It will develop over the next five to 10 years. I won’t put my entire life savings on it … but 1 or 2 percent, whatever, because there’s a lot of upside and it will ultimately change our lives.”
Novaes compared the crypto rage to the internet boom 20 years ago.
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