Crypto losses near US$700bn in worst week

The great cryptocurrency crash of 2018 is heading for its worst week yet.
Ndamanguluka Nakashole
Bitcoin sank toward US$4 000 and most of its peers tumbled on Friday, extending the Bloomberg Galaxy Crypto Index’s weekly decline to 25%. That’s the worst five-day stretch since crypto-mania peaked in early January.

After an epic rally last year that exceeded many of history’s most notorious bubbles, cryptocurrencies have become mired in a nearly US$700 billion rout that shows few signs of abating. Many of the concerns that sparked the 2018 slump - including increased regulatory scrutiny, community infighting and exchange snafus - have only intensified this week. Even after losses exceeding 70% for most virtual currencies, Oanda Corporation’s Stephen Innes has yet to see strong evidence of a capitulation that might signal a market bottom.

“There’s still a lot of people in this game,” Innes, head of trading for Asia Pacific at Oanda, said by phone from Singapore. If Bitcoin “collapses, if we start to see a run down toward US$3 000, this thing is going to be a monster. People will be running for the exits.”

Innes said his base case forecast is for Bitcoin to trade between US$3 500 and US$6 500 in the short term, with the potential to fall to US$2 500 by January.

The largest cryptocurrency retreated 4.4% to US$4 237 at 11:31 in Hong Kong, according to Bloomberg composite pricing. Rivals Ether, Ripple and Litecoin all declined at least 4.8%. The market value of all cryptocurrencies tracked by CoinMarketCap.com sank to US$138 billion, down from about US$835 billion at the market peak in January.

-Fin24

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