The prices of various virtual currencies have been maintaining stability for a long period of time. However, recently, there has been a tumble in the value of the virtual currency. This decline in the prices has been due to the market sell-off that took place recently. The value of Bitcoin fell by 7 percent. The prominent currencies followed suit with the decline in all of them by 10 and 12 percent. Bitcoin cash, Ethereum, and Ripple were hit the harder than Bitcoin. These currencies faced a loss worse than Bitcoin. As far as Bitcoin is concerned, this is the lowest it has dipped in the past months. With its lowest previously being in the month of July, that is $5800, however, because of the recent market sell-off, its value right now is $4700.

The prices in the sector of virtual currency had increased in the month of January. However, ever since then, there has only been a steady decline in the prices. Because of this kind of decline in the price, it is being stated that there has been a loss of $600 billion from the market. The decrease that has taken place lately has been attributed to the stock sell-off that took place. Several reasons are being given explain the manner in which the virtual currencies are affected by the changes in the market. Even as Bitcoin was being compared to Gold and it was believed that it can stand the ups and downs in the economic system, the fact is, the virtual currency market is yet not strong enough so as not to be affected by the equity sector. Because of the decline in the equity sector, it has been established that virtual currency sector also faced a decline. And therefore if the decline in the equity sector continues, there will be noticed a further decline in the virtual currency sector.

Leave a Reply