The cryptocurrencies lost a significant portion of their price for a second time in less than 24 hours, reaching a nine-month low. The reason for the downturn were the worries that wider usage of digital assets will take longer than expected.
The Bitcoin, the largest digital currency, dropped by 9.8% to 6,408 USD in Hong Kong.
Bloomberg Galaxy Crypto Index, which tracks the performance of the largest cryptocurrencies, is moving near its lowest values since November 2017, after the fall of digital currencies Ripple, Ether and Litecoin.
This is another bad news for traders betting on cryptocurrencies after Wednesday publication in Business Insider reported that Goldman Sachs Group Inc gave up its plans to establish a trading desk with digital money. Earlier this week, the ShapeShift AG announced that it would start requiring personal information from its users, raising fears that it could repel clients, who hold on to anonymity.
Much of the hopes of retail investors for a greater institutional presence were really driven by Goldman Sachs.
While many banks and institutional investors are slowly entering the crypto world, worries about everything from money laundering schemes, market manipulation, and vague regulations hamper the widespread acceptance of this kind of payment.
The next key point for the cost of the Bitcoin is the 5,000 USD threshold. According to him, if it is crossed, then the depreciation may accelerate.