80% Down: 2018 Cryptocurrency plunge looks worse than dot-com bubble
Michael Patterson at Bloomberg called it «The Great Crypto Crash of 2018». The tumble has now surpassed the Nasdaq Composite Index’s 78 percent peak-to-trough decline after the dot-com bubble burst in 2000.
At the same time Nasdaq MVIS CryptoCompare Digital Assets 10 extended its collapse from a January high to 80 percent.
According to Patterson, just like their predecessors during the Internet-stock boom almost two decades ago, cryptocurrency investors who bet big on a seemingly revolutionary technology are suffering a painful reality check, particularly those in many secondary tokens, so-called alt-coins.
The analyst points out that the virtual-currency mania of 2017 — fueled by hopes that Bitcoin would become “digital gold” and that blockchain-powered tokens would reshape industries from finance to food — has quickly given way to concerns about excessive hype, security flaws, market manipulation, tighter regulation and slower-than-anticipated adoption by Wall Street.
However, crypto bulls neglect all the negative comparisons to the dot-com era by pointing to the Nasdaq Composite’s recovery to fresh highs 15 years later, and to the internet’s enormous impact on society. They also note that Bitcoin has rebounded from past crashes of similar magnitude.
As of 10:00 UTC, September 12, the total cryptocurrency market capitalization is $187,4 billion and it’s the lowest number this year. The majority of alt-coins are in the red zone and have lost 3-13% in 24 hours.
Bitcoin is trading at $6264 (-1,4%) at press time, Ethereum reached $174.47 (-10,29%). There is only Dogecoin in Top-20 on CoinMarketCap that gained 2,62% (+24,36% a week), it is rated 17 and overtakes Nem, Tezos and VeChain in capitalization.