Cryptocurrency markets continue to suffer overnight, this time in sync with a sell-off on US stock markets. After what has been a bullish 12 months
Cryptocurrency markets continue to suffer overnight, this time in sync with a sell-off on US stock markets.
After what has been a bullish 12 months for digital currencies, the coins are approaching the end of the year with a period of sharp declines.
The two biggest coins, Bitcoin and Ethereum, have fallen 8.61% and 14.16% respectively in the last seven days.
In the last 24 hours they were down 4.20% and 6.35% respectively.
Prices have been on a steady decline since China announced during a press conference in the middle of November that it will continue to clean up virtual currency mining in the country.
The problem has been exacerbated further for crypto traders as this time the crypto markets seemed to have mirrored the American markets, which suffered on December 3 after the latest monthly job reports sent mixed signals about the country’s economy.
Other alt coins are also experiencing a period of decline.
Most notably, Solana is down nearly 24%, Binance coin 10.9% and Dogecoin 12.47% over the past week.
Bears have taken control of crypto markets, said Naeem Aslam, market analyst at AvaTrade.
“The drop in Bitcoin prices on Monday pushed the digital coin below its 200 days average which is negative news for crypto enthusiasts,” he said.
“The recent price action of cryptocurrencies disputes the argument that the blockchain space has finally matured because of which extreme volatility in markets will likely decrease moving forward. However, this does not seem to be the case.
“Similarly, some investors consider digital coins to be a hedge against inflation, and rising consumer prices were to some extent able to provide some support to crypto markets last week. However, crypto markets were not able to sustain the rally.”
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