A visual representation of the cryptocurrency Bitcoin on November 20, 2018 in London, England.
Jordan Mansfield | Getty Images News | Getty Images
GUANGZHOU, China – Bitcoin and other digital coins that fueled on Monday wiped approximately $ 170 billion off the overall cryptocurrency market.
The market cap, or value of the cryptocurrency market, was $ 959.53 billion at 12:10 PM. Time in Singapore has dropped from $ 1.1 trillion the day before, according to Coinmarketcap.
Bitcoin, the largest cryptocurrency, fell 11% from the previous day to $ 35,828.06 at around 12:15 p.m. Singapore time. Ether, the second largest, fell around 15% to $ 1,126.72.
The sell-off of cryptocurrencies comes after a major rally and may signal profit-taking by investors. Bitcoin is still up over 340% in the past 12 months, hitting an all-time high of just under $ 42,000 last week.
Bitcoin’s resurgence has been attributed to a number of factors, including more purchases from large institutional investors.
And it has also been compared to “digital gold,” a potential safe haven and a hedge against inflation. In a recent research report, JPMorgan said Bitcoin could hit $ 146,000 in the long run as it competes with gold as an “alternative” currency. However, the investment bank’s strategists noted that Bitcoin would have to become much less volatile to hit that price. Bitcoin is known for wild price fluctuations.
Some Bitcoin critics – like David Rosenberg, economist and strategist at Rosenberg Research – have called Bitcoin a bubble.
However, the long-term uptrend in terms of Bitcoin remains. Last week, Social Capital’s Chamath Palihapitiya said bitcoin could soar above $ 100,000.
“It will likely be $ 100,000, then $ 150,000, and then $ 200,000,” Palihapitiya told CNBC’s “mid-term report.” “What time? I don’t know. [Maybe] five or ten years, but it’s going there. “