Morning Report: Cryptocurrencies have shed tens of billions of dollars in value in a slow-motion correction.
After a historic run, cryptocurrencies have given back substantial gains. While still sharply higher for the year, bitcoin and company have fallen by around 31 percent since new all-time highs were set by the asset class, according to CoinMarketCap’s dataset.
The percent decline is rough, but the sheer dollar cost of the correction is notable by itself. The aggregate value of cryptos peaked at over $15 billion in June. That figure has fallen from $80.4 billion as of this morning.
Losses are broad. A quick rundown:
- Bitcoin now trades for $2290, after cresting $3,000 in June.
- Ethereum trades for under $200, after cresting the $400 mark in June.
- And Ripple, which reached an aggregate value of over $16 billion in May, is now worth less than half that today with a market cap of $7.2 billion.
We bring up the price changes above as the falling value of various cryptos associated with initial coin offerings (ICOs) could dampen interest in the speculative financings. And if ICOs clam up, an avenue to capital for a number of projects flatlines.
ICOs slipping also undercut a critical driver of what we could call implied value of the ethereum blockchain. Bitcoin partisans likely won’t be too mad, as such a decline might bolster their preferred crypto’s place in the market. But less hype in the sector can’t be something any short-term bitcoin bull can really want.
The crypto world has had a staggeringly big 2017. But gravity exists, even in the blockchain.
From the Crunchbase Daily:
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