Bitcoin drop 5 percent in value along with other alt-coin 12 and 18 percent respectively this week





In the course of a few days this week, total cryptocurrency market lost $18 billion of its already waning value. bitcoin began to stabilize on Friday.

Bitcoin the largest and most widely owned digital asset began to drop on Wednesday evening and fell below $6,200 for the first time in a month, according to data from CoinDesk. Bitcoin was mostly stable in the $6,200 range as of Friday afternoon but had started this week off well above $6,500, ending the week about 5 percent lower.

Other cryptocurrencies, known as "altcoins," fared much worse. Ether, the second largest cryptocurrency by market capitalization, has dropped 12 percent in a week while the third largest XRP is down 18 percent in seven days.

The total market capitalization for cryptocurrencies was $201 billion on Friday, down from $219 billion on Tuesday. The market has struggled to recover to anywhere near crypto's $820 billion peaks in January according to CNBC.

According to the report from Brian Kelly, founder, and CEO of BKCM, the sell-off started after the rumors that cryptocurrency exchange Bitfinex was going to suspend all deposits from fiat currencies.
That spooked investors a little bit- it was a main cause of the downdraft but we're seeing prices mostly back to normal," Kelly said. The exchange posted a response to the reports and reassured investors that "Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this.

Kelly highlighted also positive regulatory news of Asia that may have aided bitcoin's recovery. Financial regulators in South Korea will reportedly announce an official stance on initial coin offerings in November. Regulators in Singapore meanwhile will help existing cryptocurrency firms set up local bank accounts, according to a report from Bloomberg. 


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