The Australian share market isn't the only financial market that is experiencing a broad selloff on Thursday.
In Asian afternoon trade the crypto market has suddenly plunged lower with heavy declines being seen across the board. In fact, just a single coin in the top 50 is in positive territory right now.
This has led to the market shedding 5.7% of its value or US$12.4 billion in a matter of hours. The current market value stands at US$205 billion according to Coin Market Cap.
Here is the state of play compared to 24 hours ago:
- The Bitcoin (BTC) price is down 4.5% to US$6,318.57.
- The Ethereum (ETH) price has dropped 9.1% to US$206.11.
- The Ripple (XRP) price has plunged 9.9% to 42.81 U.S. cents.
- The Bitcoin Cash (BCH) price is 11% lower at US$457.66.
- The EOS (EOS) price is down 7.5% to US$5.43.
- The Stellar (XLM) price has tumbled 8.5% to 22.21 U.S. cents.
- The Litecoin (LTC) price is off 8.5% to US$53.24.
Why are cryptocurrencies crashing lower?
Cryptocurrencies have been on the decline this week after the International Monetary Fund criticised them in its latest World Outlook Report.
It warned that: "Cybersecurity breaches and cyber-attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system."
While this has weighed on market sentiment, especially for Ripple which is targeting the cross-border transfer market, I suspect that today's decline is more to do with the share market selloff spreading and the fact that Bitcoin and co. are no longer classed as safe haven assets.
I would suggest that traders stay clear of the coins despite many experts tipping them to have bottomed recently.
