2018 cryptocurrency crash

Short description: Fall in prices of cryptocurrencies in 2018

The 2018 cryptocurrency crash[1][2][3][4][5] (also known as the Bitcoin crash[6] and the Great crypto crash[7]) was the sell-off of most cryptocurrencies from January 2018. After an unprecedented boom in 2017, the price of Bitcoin fell by about 65 percent during the month from 6 January to 6 February 2018. Subsequently, nearly all other cryptocurrencies also peaked from December 2017 through January 2018, and then followed Bitcoin. By September 2018, cryptocurrencies collapsed 80% from their peak in January 2018, making the 2018 cryptocurrency crash worse than the Dot-com bubble's 78% collapse (albeit with a vastly smaller amount of money invested).[7] By 26 November, Bitcoin also fell by over 80% from its peak, having lost almost one-third of its value in the previous week.[8]

## Contents

* 1 Background
* 2 History
* 3 See also
* 4 References

## Background

The price of Bitcoin in 2017 had grown by about 2,700%, and, in the same year, some cryptocurrencies had achieved far higher growth than Bitcoin. Bitcoin set a record high of $19,891 on 17 December.[9] Some economists, famous investors, and finance professionals warned that rapidly increasing cryptocurrency prices could create a burst of the "bubble". When Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) started listing Bitcoin futures in December, that allowed mainstream investors to short Bitcoin on a large scale, and allowed institutional investors to gain exposure to the Bitcoin price without buying actual Bitcoin on spot exchanges, resulting in a massive drop in demand for actual spot Bitcoin.[citation needed]

## History

* 17 December 2017: Bitcoin's price briefly reaches its all-time high of $19,783.06.[9]
* 22 December 2017: Bitcoin fell below $11,000, a fall of 45% from its peak.[10]
* 6 January 2018: Bitcoin sets a lower high of $17,252 on Bitfinex.[citation needed]
* 12 January 2018: Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of bitcoin depreciated by 12 percent.[11][12]
* 16 January 2018: Bitconnect announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texas and North Carolina issued a cease and desist order against it as it was suspected of being fraudulent.[13][14][15][16] Bitconnect loses 92 percent of its value within days.
* 26 January 2018: Coincheck, Japan's largest cryptocurrency OTC market, was hacked. 530 million US dollars of the NEM were stolen by the hacker, and the loss was the largest ever by an incident of theft, which caused Coincheck to indefinitely suspend trading.[17]
* 26 January 2018 to 6 February 2018: the price of Bitcoin halved, and reached 6,000 US dollars. Additional negative news for the cryptocurrency market continued in the first quarter of 2018. The price remained low though the level slightly recovered in the first quarter of 2018.[citation needed]
* 7 March 2018: Compromised Binance API keys were used to execute irregular trades.[citation needed]
* Late March 2018: Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.[18]
* 15 November 2018: Bitcoin's market capitalization fell below $100 billion for the first time since October 2017 and the price of Bitcoin fell to $5,500.[19][20]
* 26 November 2018: Bitcoin falls below $4000, having lost almost one-third of its value in the previous week.[8]

## See also

* Bitcoin
* Cryptocurrency
* Cryptocurrency bubble
* Tether (cryptocurrency)

## References

1. ↑ Popken, Ben (2 February 2018). "Bitcoin loses more than half its value amid crypto crash". NBC News. https://www.nbcnews.com/tech/internet/bitcoin-loses-more-half-its-value-amid-crypto-crash-n844056.
2. ↑ Silcoff, Sean (13 February 2018). "OMERS-affiliated Ethereum Capital offering pinched, but not pulled, following choppy markets and cryptocrash". The Globe and Mail (The Woodbridge Company). https://www.theglobeandmail.com/report-on-business/ethereum-capital-financing-pinched-but-not-pulled-following-choppy-markets-and-cryptocrash/article37958224/.
3. ↑ "Crypto crash: bitcoin drops to lowest point since November". The Week. 2 February 2018. http://www.theweek.co.uk/cryptocurrencies/91014/crypto-crash-bitcoin-and-ethereum-plummet-in-value.
4. ↑ Smith, Noah (8 February 2018). "Crypto Cynics Stand to Profit the Most". Bloomberg News. https://www.bloomberg.com/view/articles/2018-02-08/crypto-cynics-stand-to-profit-the-most.
5. ↑ Chaparro, Frank (2 February 2018). "ROUBINI: 'The Mother Of All Bubbles And Biggest Bubble in Human History Comes Down Crashing'". Business Insider. https://www.businessinsider.com/bitcoin-the-mother-of-all-bubbles-is-now-crashing-2018-2.
6. ↑ Kaplan, Michael (11 September 2018). "Bitcoin crash: This man lost his savings when cryptocurrencies plunged". CNN. https://money.cnn.com/2018/09/11/investing/bitcoin-crash-victim/index.html.
7. ↑ 7.0 7.1 Patterson, Michael (12 September 2018). "Crypto’s 80% Plunge Is Now Worse Than the Dot-Com Crash". Bloomberg News. https://www.bloomberg.com/news/articles/2018-09-12/crypto-s-crash-just-surpassed-dot-com-levels-as-losses-reach-80.
8. ↑ 8.0 8.1 Russilillo, Steven (26 November 2018). "Bitcoin Continues Steep Fall as Cryptocurrency Collapse Worsens". The Wall Street Journal. https://www.wsj.com/articles/bitcoin-falls-below-4-000-as-cryptocurrency-collapse-worsens-1543241154. Retrieved 27 November 2018.
9. ↑ 9.0 9.1 "Bitcoin Hits a New Record High, But Stops Short of $20,000" (in en). Fortune. http://fortune.com/2017/12/17/bitcoin-record-high-short-of-20000/.
10. ↑ Martin, Will (22 December 2017). "Bitcoin swings wildly as its price plunges". Business Insider. https://www.businessinsider.com/bitcoin-price-drops-plunges-friday-december-22-2017-12.
11. ↑ Choudhury, Saheli Roy (11 January 2018). "South Korea is talking down the idea a cryptocurrency trading ban is imminent". CNBC. https://www.cnbc.com/2018/01/11/south-korea-cryptocurrency-justice-ministry-softened-stance.html.
12. ↑ Kharpal, Arjun (11 January 2018). "Over $100 billion wiped off global cryptocurrency market following talk of South Korea trading ban". CNBC. https://www.cnbc.com/2018/01/11/bitcoin-ripple-ethereum-prices-fall-after-south-korea-trading-ban-talk.html.
13. ↑ McKay, Tom (17 January 2018). "BitConnect, Anonymously-Run Crypto Exchange, Crashes After States Issue Cease and Desists" (in en-US). Gizmodo. Archived from the original on 17 January 2018. https://web.archive.org/web/20180117061255/https://gizmodo.com/bitconnect-anonymously-run-crypto-exchange-crashes-af-1822144652.
14. ↑ Kharif, Olga (16 January 2018). "BitConnect Closes Exchange as States Warn of Unregulated Sales". Bloomberg. Archived from the original on 17 January 2018. https://web.archive.org/web/20180117001520/https://www.bloomberg.com//news/articles/2018-01-16/bitconnect-closes-exchange-as-states-warn-of-unregulated-sales.
15. ↑ Swearingen, Jake (17 January 2018). "The Rise and Fall of BitConnect, the Sketchiest Crypto Exchange" (in en). Select All (New York Magazine). http://nymag.com/selectall/2018/01/ponzi-scheme-bitcoin-site-bitconnect-shuts-down.html.
16. ↑ "Crypto News Update" (in en-us). NASDAQ.com. 17 January 2018. Archived from the original on 17 January 2018. https://web.archive.org/web/20180117173753/http://www.nasdaq.com/article/crypto-news-update-20180117-00663.
17. ↑ Mochizuki, Takashi; Vigna, Paul (26 January 2018). "Cryptocurrency Worth $530 Million Missing From Japanese Exchange". The Wall Street Journal. https://www.wsj.com/articles/cryptocurrency-worth-530-million-missing-from-japanese-exchange-1516988190.
18. ↑ Russo, Camila (26 March 2018). "Twitter Joins Facebook, Google in Banning Crypto Coin Sale Ads". Bloomberg. https://www.bloomberg.com/news/articles/2018-03-26/twitter-joins-facebook-google-in-banning-crypto-coin-sale-ads.
19. ↑ Huang, Eustance (14 November 2018). "Bitcoin market cap falls below $100 billion for first time since October 2017". CNBC. https://www.cnbc.com/2018/11/15/bitcoin-market-cap-falls-below-100-billion-for-first-time-since-2017.html.
20. ↑ "The Entire Cryptocurrency Scene—Including Bitcoin—Is Plummeting Again. These Might Be the Reasons Why" (in en). Fortune. http://fortune.com/2018/11/15/bitcoin-price-cryptocurrency-crash-why/.

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