Over the last month the value of virtual currencies has plummeted by around 50%, with the cryptocurrency market losing around $110bn and possibly more, according to Bitcoin Exchange Guide. This loss of value has brought the market back to its September 2017 price.
Bitcoin Exchange Guide also noted that several currencies have registered losses of more than 95%, leading several cryptocurrency startups to close up shop, such as Giga Watt who filed for bankruptcy in November.
Furthermore, Bloomberg has reported that a number of companies are struggling due to their decision to keep a portion of their funds in digital assets thereby overextending themselves, a choice which ultimately led to disaster in the current digital currency market.
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"I'd be comfortable saying that the pricing pressure on digital assets in 2018 is likely to lead to 25-50% shut downs and layoffs for current projects based on historical comparisons," commented Lex Sokolin, global director of fintech strategy at Autonomous Research. "However, the pace of new entrants and capital could counterbalance this contraction and still grow the sector overall."
Bitcoin, the largest virtual currency, dropped to its lowest point in the market in 16 months over the weekend, falling below a value of $3,300, however in comparison to the other crypto companies, the well-established crypto giant has seen steady gains since.