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The Crypto Market Suffers a Major Blow, Losing $60 Million in 24 Hours

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The closer scrutiny of major cryptocurrencies, coupled with the recent update by Google that it will ban all ads related to digital assets, has delivered a huge blow to the crypto community. This has been evident from the continued downward slide of the major cryptocurrencies on Thursday.

By early Thursday morning, the total value of all digital coins in the world stood at $310.4 million. This is a significant drop from $372.9 million just a day before. This data is based on Coinmarketcap, a platform that helps track prices depending on different exchanges.

Bitcoin Down Even Further

As expected, Bitcoin, one of the largest cryptocurrencies by market volume, is the biggest victim of this development, trading at $7,676.52 as of Thursday. According to CoinDesk data, this is the lowest it has been since February 8th. By 4:00 am ET, however, there was some notable improvement, with prices rising to $8,219.77. This pushed the total market cap of cryptocurrencies to $331.7 billion.

Why Are Prices Falling?

There are several factors that may have led to the drastic fall in prices. One major culprit in this case is Mt. Gox, a collapsed Japanese cryptocurrency exchange that went through a sale by trustees. After going through a loss of about 850,000 Bitcoins, the exchange saw fit to file for bankruptcy and closed in 2014. Just recently, Mark Karpeles, the founder, pleaded not guilty to charges of funds embezzlement before a court.

The other fact that has greatly affected the prices of cryptocurrency in the last few days is the announcement by Alphabet-owned Google. Being the world’s leading advertiser, its current update, restricting any form of crypto ads, has negatively affected the prices of all digital assets.

Gatecoin Offers its View

According to an email sent to CNBC by Thomas Glucksman, the Head of APAC business development at Gatecoin, some liquid traders seem to be hungry for buy-back opportunities and this may have triggered the sell-off. He says:

The sell-off was triggered by a number of factors, notably, weariness over increased regulatory scrutiny of ICOs, the Mt.Gox bitcoin dump and what seem to be some heavily liquid traders pushing for future buy-back opportunities.

ICO Scams

On the other hand, there have also been cases of ICO scams as seen in an earlier report by CNBC about how con artists made away with well over $2 million after coming up with a fake ICO.

What do you think about the continued downfall of prices in the cryptocurrency world? What could be the major cause? Let us know your views in the comments section below.

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