REALITY CHECK

In one brutal month, nearly $50 billion was wiped off of bitcoin’s market value

Obsession
Future of Finance
Obsession
Future of Finance

Bitcoin giveth, and bitcoin taketh away.

Last year, the price of bitcoin rose more than 1,000%, other cryptocurrencies surged even more, and crypto billionaires were minted along the way. This year is off to a very different start. A crash in the price of bitcoin wiped off nearly $50 billion from the cryptocurrency’s market cap in January alone.

The price of bitcoin has halved from its December peak, to less than $10,000. January was the worst one-month loss in the cryptocurrency’s history, with previous declines paling in comparison (in absolute terms). February isn’t looking so great either, with bitcoin falling by around 8% today, at the time of writing.

The cryptocurrency markets is suffering amid a regulatory crackdown across Asia, a hotbed for bitcoin mining and trading, and the general backlash against the volatile, sometimes scam-ridden market: Facebook recently announced it was going to ban ads promoting cryptocurrencies.


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