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Bitcoin and the rest of the cryptocurrencies are melting down

Unfortunately for traders the crypto selloff has gathered pace on Thursday and the market is a sea of red.

This has led to the entire value of the crypto market falling an incredible 14.5% since this time yesterday. According to Coin Market Cap, the crypto market is currently worth a total of US$204.07 billion, down from US$238.6 billion 24 hours ago.

What has caused the selloff?

As I mentioned this morning, the selloff appears to have been caused by rumours that investment bank Goldman Sachs has postponed plans to open a trading desk for cryptocurrencies while regulations surrounding digital currencies remain unclear.

This would be another major disappointment for the crypto market as many had predicted that the launch of a trading desk by Goldman Sachs would lead to an inflow of institutional money to lift and support prices.

While Goldman has not confirmed the speculation, judging by the market’s reaction today, traders certainly seem to believe it to be the case.

The sharp fall by the Bitcoin price and its altcoin peers has led to the Bloomberg Galaxy Crypto Index, a gauge of the largest digital currencies, trading near its lowest level since November 2017. Unfortunately, the lack of positive catalysts on the horizon means that I wouldn’t be surprised if these declines continued over the coming days.

Here is the state of play on Thursday afternoon versus this time yesterday:

The Bitcoin (BTC) price is down 12.2% to US$6,470, reducing its market capitalisation to US$11.6 billion.

The Ethereum (ETH) price has plunged 19.5% to US$229.09. ETH’s market capitalisation has fallen to US$23.3 billion.

The Ripple (XRP) price is 13.6% lower to 28.62 U.S. cents, leaving it with a market capitalisation of US$11.35 billion.

The Bitcoin Cash (BCH) price has crashed 19.2% lower to US$507.44. The Bitcoin spin off now has a market capitalisation of US$8.8 billion.

The EOS (EOS) price has been the worst performing major coin with a 21.8% decline to US$5.08. The EOS market capitalisation has been cut down to US$4.6 billion.

Outside the top five Stellar (XLM) is down 14%, Litecoin (LTC) is 17% lower, Cardano (ADA) has fallen 18.4%, and Monero (XMR) has tumbled 16.3% lower.

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