$25 billion wiped out, crypto hedge funds shutdown impends

$25 billion wiped out, crypto hedge funds shutdown impends

Greenspan added: "From a technical analysis standpoint, as bitcoin's price falls below $6,000 we're seeing liquidation: stop loss orders automatically going into effect and/or people trying to play the breakout".

Travis Kling, a hedge fund founder, was quoted saying that he "didn't sleep very well" due to the high disorder in wider digital currency markets because of the recent Bitcoin Cash (BCH) hard fork, which coinidol recently reported. In last one week, the crypto market has lost almost $60 billion of its valuations with Bitcoin and other altcoins taking a major hit.

After months of relative calm, the digital currency started to drop last week.

Stellar Lumens, the token associated with an open-source blockchain network and non-profit organisation that works with cross-border payments, has overtaken Bitcoin Cash. Deposits and withdrawals of both BCH hard forks remain frozen on Kraken (like the rest of the exchanges) until the two chains stabilize.

ETH also lost a significant $16.5 billion in market capitalization over a few hours to reach a total market cap of $16 billion.

On Friday, the SEC announced its first civil penalties against two cryptocurrency companies that didn't register their initial coin offerings as securities. The entire market is in the red at the time of press and the trend appears as though it will continue in the short-term. During the last week, Bitcoin Cash ABC [IOU] has traded 31.8% lower against the dollar.

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Bitcoin Cash has a max supply of 17,466,775 coins.

Investors, according to independent analyst Jane Winterburn, are now likely to wait for the market to bottom out before moving in to revive prices.

"The sell-off is related to enforcement, which is nearly certainly underway", said Justin Litchfield, chief technology officer at ProChain Capital.

Bitcoin is now treading lows close to $4,500 levels currently as other cryptocurrencies are also falling across the board so far today. "Projects are being made to return investor money, which, after having spent a ton of money marketing their $100 million ICO on a lavish party-filled road-show that was the norm for this vintage of ICOs, will be tough". Airfox and Paragon Coin agreed to pay civil penalties for running token sales previous year without registering them as securities offerings. The last time the Bitcoin hash rate went down this low has been in August this year.

We followed up with the operators of a number of Australian-based crypto exchanges, to try and get a gauge on what's caused the big drop in price.

Bitcoin was trading on Tuesday at $4,354.20, its lowest level on the Bitstamp exchange since October, 2017.

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