The bearish market of cryptocurrencies collapsed to a new ten-month low, driven by the biggest rival of the Bitcoin.
The Ethereum collapsed by 9.5% on Friday. The Bitcoin has lost 2.5%, and the market capitalization of digital assets has shrunk to 197 billion USD, down by 640 billion USD from its peak in January.
The cryptocurrencies declined in five of the past six weeks amid fears that wider adoption of digital money would take longer than expected. This alarm has been boosted over the weekend by the US Securities and Exchange Commission, which has temporarily halted the trade in two securities linked to cryptocurrencies. At the same time, the co-founder of the Ethereum, Vitalik Buterin, told that the days of sharp growth for the blockchain industry are likely to have passed.
The cryptocurrencies remain under pressure on Monday despite the news that Citigroup has developed a new mechanism for investment in the sphere. The American bank plans to play the role of an agent issuing the so called receipts for digital assets to allow trading through intermediaries without direct ownership of the underlying currencies, a firm source familiar with the plans.
The Bloomberg Galaxy Crypto Index of the main virtual currencies is down by 4.5% today, moving to its lowest level since mid-November.
The Ethereum has collapsed faster than the Bitcoin in recent months because of fears that blockchain companies are leaving the world’s second-largest currency. Many startups, which have attracted Ethereum from investors in their ICOs, will ultimately have to sell the coins they own to cover wage and development costs.