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2018 cryptocurrency crash

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The 2018 cryptocurrency crash[1][2][3][4][5] (also known as the Bitcoin crash[6] and the Great crypto crash[7]) is the sell-off of most cryptocurrencies from January 2018. After an unprecedented boom in 2017, the price of bitcoin fell by about 65 percent during the month from 6 January to 6 February 2018. Subsequently, nearly all other cryptocurrencies also peaked from December 2017 through January 2018, and then followed bitcoin. The cryptocurrencies' market capitalization lost at least 342 billion US dollars in the first quarter of 2018,[8] the largest loss in cryptocurrencies up to that date. By September 2018, cryptocurrencies collapsed 80% from their peak in January 2018, making the 2018 cryptocurrency crash worse than the Dot-com bubble's 78% collapse.[7] By 26 November, bitcoin also fell by over 80% from its peak, having lost almost one-third of its value in the previous week.[9]

Background

The price of bitcoin in 2017 had grown to a maximum of about 2,700%, and in the same year, some cryptocurrencies had achieved far higher growth than bitcoin. Bitcoin set a record high of 19,891 US dollars on 17 December on the Bitfinex exchange. Some economists, famous investors, and finance professionals warned that rapidly increasing cryptocurrency prices could create a burst of the "bubble." When Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) started listing bitcoin futures in December, that allowed mainstream investors to short bitcoin on a large scale. The period immediately before the crash, bitcoin price reached its peak, and plunged about 46 percent, though it recovered quickly to 17,252 US dollars on 6 January 2018 on Bitfinex.

History

  • December 17, 2017: bitcoin's price briefly reaches its all time high of $19,783.06.[10]
  • December 22, 2017, bitcoin fell below $11,000, a fall of 45% from its peak.[11]
  • January 12, 2018, Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of bitcoin depreciated by 12 percent.[12][13]
  • January 26, 2018, Coincheck, Japan's largest cryptocurrency OTC market, was hacked. 530 million US dollars of the NEM were stolen by the hacker, and the loss was the largest ever by an incident of theft, which caused Coincheck to indefinitely suspend trading.[14]
  • From 26 January to 6 February, the price of Bitcoin halved, and reached 6,000 US dollars.[citation needed] Additional negative news for the cryptocurrency market continued in the first quarter of 2018.[citation needed] The price remained low though the level slightly recovered in the first quarter of 2018.[citation needed]
  • March 7, 2018, Compromised Binance API keys were used to execute irregular trades.[15]
  • Late March 2018, Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.[16]
  • November 15, 2018, Bitcoin's market capitalization fell below $100 billion for the first time since October 2017 and the price of Bitcoin fell to $5,500.[17][18]

See also

References

  1. ^ Popken, Ben (February 2, 2018). "Bitcoin loses more than half its value amid crypto crash". NBC News. Retrieved October 22, 2018.
  2. ^ Silcoff, Sean (February 13, 2018). "OMERS-affiliated Ethereum Capital offering pinched, but not pulled, following choppy markets and cryptocrash". The Globe and Mail. The Woodbridge Company. Retrieved October 22, 2018.
  3. ^ "Crypto crash: bitcoin drops to lowest point since November". The Week. February 2, 2018. Retrieved October 22, 2018.
  4. ^ Smith, Noah (February 8, 2018). "Crypto Cynics Stand to Profit the Most". Bloomberg. Retrieved October 22, 2018.
  5. ^ Chaparro, Frank (February 2, 2018). "ROUBINI: 'The Mother Of All Bubbles And Biggest Bubble in Human History Comes Down Crashing'". Business Insider. Retrieved October 22, 2018.
  6. ^ Kaplan, Michael (September 11, 2018). "Bitcoin crash: This man lost his savings when cryptocurrencies plunged". CNN. Retrieved October 22, 2018.
  7. ^ a b Patterson, Michael (September 12, 2018). "Crypto's 80% Plunge Is Now Worse Than the Dot-Com Crash". Bloomberg. Retrieved October 22, 2018.
  8. ^ Makadiya, Pratik (April 3, 2018). "Cryptocurrency Market Down 54% in Q1 2018, Losses Top $500 Billion". Crypto Globe. Retrieved October 22, 2018.
  9. ^ Russilillo, Steven (26 November 2018). "Bitcoin Continues Steep Fall as Cryptocurrency Collapse Worsens". The Wall Street Journal. Retrieved 27 November 2018.
  10. ^ "Bitcoin Hits a New Record High, But Stops Short of $20,000". Fortune. Retrieved 2018-11-15.
  11. ^ Martin, Will (December 22, 2017). "Bitcoin swings wildly as its price plunges". Business Insider. Retrieved October 22, 2018.
  12. ^ Choudhury, Saheli Roy (January 11, 2018). "South Korea is talking down the idea a cryptocurrency trading ban is imminent". CNBC. Retrieved October 22, 2018.
  13. ^ Kharpal, Arjun (January 11, 2018). "Over $100 billion wiped off global cryptocurrency market following talk of South Korea trading ban". CNBC. Retrieved October 11, 2018.
  14. ^ Mochizuki, Takashi; Vigna, Paul (January 26, 2018). "Cryptocurrency Worth $530 Million Missing From Japanese Exchange". The Wall Street Journal. Retrieved October 22, 2018.
  15. ^ Harper, Colin (March 8, 2018). "Binance Explains API/Phishing Attack, Hackers Walk Away Losing Money". Coin Central. Retrieved October 22, 2018.
  16. ^ Russo, Camila (March 26, 2018). "Twitter Joins Facebook, Google in Banning Crypto Coin Sale Ads". Bloomberg. Retrieved October 22, 2018.
  17. ^ Huang, Eustance (2018-11-14). "Bitcoin market cap falls below $100 billion for first time since October 2017". CNBC. Retrieved 2018-11-15.
  18. ^ "The Entire Cryptocurrency Scene—Including Bitcoin—Is Plummeting Again. These Might Be the Reasons Why". Fortune. Retrieved 2018-11-15.
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