Bitcoin and other digital coins tanked on Monday, wiping some $200 billion off the cryptocurrency market. CNBC reports:
The market capitalization or value of the cryptocurrency market was $880 billion at 9:20 a.m. ET, down from $1.08 trillion a day earlier, according to Coinmarketcap. Bitcoin, the largest cryptocurrency, fell over 12% from a day earlier to $32,576, according to Coin Metrics data. It earlier sank to an intraday low of $30,863. Ether, the second-largest cryptocurrency, was down 23% to $1,005. It briefly tumbled below $1,000, hitting an intraday low of $945. The sell-off in cryptocurrencies comes after a huge rally and perhaps signals some profit-taking from investors. Bitcoin is still up over 300% in the last 12 months and last week hit an all-time high just below $42,000.
Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital, said the pullback in bitcoin could be a buying opportunity for new investors. “This short term correction is both natural and needed, and is a great entry point for long-term investors as we quickly reach $50k this quarter and $100k by year’s end,” Chu told CNBC. Last week, Social Capital’s Chamath Palihapitiya said bitcoin could go above six digits. “It’s probably going to $100,000, then $150,000, then $200,000,” Palihapitiya told CNBC’s Halftime Report. “In what period? I don’t know. [Maybe] five or 10 years, but it’s going there.”