The great cryptocurrency crash of 2018 is heading for its worst week yet.

Bitcoin sank toward $4,000 and most of its peers tumbled on Friday, extending the Bloomberg Galaxy Crypto Index’s decline

since Nov. 16 to 23 percent. That’s the worst weekly slump since crypto-mania peaked in early January.

After an epic rally last year that exceeded many of history’s most notorious bubbles, cryptocurrencies have become

mired in a nearly $700 billion rout that shows few signs of abating. Many of the concerns that sparked the 2018 retreat —

including increased regulatory scrutiny, community infighting and exchange snafus — have only intensified this week. Even

after losses exceeding 70 percent for most virtual currencies, Oanda Corp.’s Stephen Innes has yet to see strong evidence of a

capitulation that would signal a market bottom. 

“There’s still a lot of people in this game,” Innes, head of trading for Asia Pacific at Oanda, said by phone from


If Bitcoin “collapses, if we start to see a run down toward $3,000, this thing is going to be a monster. People will

be running for the exits.”

Innes said his base-case forecast is for Bitcoin to trade between $3,500 and $6,500 in the short term, with the potential

to fall to $2,500 by January.


More of this week’s crypto coverage:

Pilgrims Didn’t Talk Bitcoin at Thanksgiving, Neither Should You Jamie Dimon Vindicated? Bitcoin’s Back to Where He Cried ‘Fraud’ Bitcoin-Rigging Criminal Probe Is Said to Home in on Tether

These Traders Paid a 100% Premium for Bitcoin at the Market Top SEC Crypto Settlements Spur Expectations of Wider ICO Crackdown Furious Traders Slam Crypto Exchange for Fiddling With Contracts Crypto’s 2017 Boom Led to 2018 Bust.

So What’s Next?: QuickTake


The largest cryptocurrency retreated as much as 7.6 percent on Friday, before paring losses to 4.1 percent at 4:43 p.m. in

Hong Kong, according to Bloomberg composite pricing. At $4,244, it’s trading near the lowest level since October 2017. Rivals

Ether, XRP and Litecoin all declined at least 5 percent. The market value of all cryptocurrencies tracked by sank to $138 billion, down from about $835 billion at the market peak in January.

 The rout’s biggest casualties: individual investors who piled in just as prices peaked, and companies like Nvidia Corp.

that supplied the crypto ecosystem. The California-based chipmaker has lost nearly half its value since the start of

October as demand for its cryptocurrency mining chips collapsed and results in its gaming division disappointed.

The economic impact of the crypto collapse has so far been limited, in part because most major banks and institutional

money managers have little to no exposure to virtual currencies.

For most investors, recent declines in equity markets have arguably been far more important: the $700 billion slump in

digital assets since January compares with $1.3 trillion lost from the market value of global shares just this week.

 While some crypto bulls have argued that Bitcoin and its peers would act as havens from turmoil in traditional financial

markets, this year’s losses have undercut those claims. Gold, a traditional haven for investors, has climbed in recent weeks as

virtual currencies tumbled.

 “I don’t think coins are going to be anywhere near as attractive as some of the other cross-asset plays,” Innes said.

“Gold prices are going to jump considerably higher and there’s an inverse relationship we’re starting to see with gold and coins.”

By Eric Lam
]Wire: Bloomberg News (BN) Date: Nov 23 2018  3:47:21
Crypto Losses Near $700 Billion in Worst Week Since Bubble Burst