The whole cryptocurrency market suffered a big loss today as the majority of cryptocurrencies lost to 20%-30% of their value and the market capitalization dropped with approximately $200 billion in less than 24 hours.
Analysts have attributed the recent pullback to the up to 100% increase in value that all the major cryptocurrencies experienced, including Bitcoin, Ethereum, Litecoin and Ripple and other top 100 coins. Despite its sixth correction this year, Bitcoin is still up 63% since 23rd November.
Analyst Rober Reid said on his Twitter page:
Bitcoin has “crashed” 30% SIX TIMES in 2017. Each “crash” has been followed by an increase of: 76%, 237%, 183%, 165%, 152%. Bitcoin takes 7 steps forward, 2 steps back, 7 steps forward, 2 steps back. Every 2 steps back is heralded as the end of #bitcoin. Relax!
According to Litecoin creator and former Coinbase executive, Charlie Lee, the cryptocurrency market needs to consolidate and these corrections are necessary after an enormous growth. They are necessary for ensuring that the cryptocurrency market is growing organically and prevents short-term bubbles.