Investing in Bitcoin is a risky proposition most of the time but right now it might be a downright bad decision. The popular cryptocurrency along with most of its kind are currently tanking and it doesn’t look like they’re going to recover anytime soon. This has been going on for a few days now, with Bitcoin first dropping under $6,000 earlier today. At the time of this writing, the cryptocurrency is hovering above that mark, albeit just by a little.
Bitcoin started dropping severely back in May and although its value goes up and down all the time, the virtual currency hasn’t tanked this hard since late last year. Granted, its value more than tripled shortly after but it’s hard to say if a similar situation could happen again in the near future. The long-awaited creation of a Bitcoin exchange-traded fund (ETF) is expected to increase the cryptocurrency’s value. However, the ETF must first be approved by the United States Securities and Exchange Commission, which many believe won’t happen until early 2019.
As a general rule of thumb, when Bitcoin starts to drop it tends to drag all the other digital currencies with it. This time was no different. As a result, pretty much every worthwhile cryptocurrency suffered significant drops these past few days. Changes range from -1% to as much as -40% in just the last 24 hours alone. That said, some are definitely doing way worse than others. Ethereum is one of the most notable examples.
Ethereum Continues to Drop Alongside Bitcoin
Although Ethereum doesn’t come close to Bitcoin in terms of price, it does come the closest when it comes to market cap. Ethereum is the second largest digital currency in that department, which usually makes it fairly valuable. You’ll probably not want to sell right now, though, because Ethereum is at its lowest point in 2018 so far. Ethereum is valued at only around $260 at the moment, which is not great. By comparison, the cryptocurrency reached well over $1,000 in early 2018. Its current price is actually lower than it was last year on the same day when it was hovering around the $300 mark.
Meanwhile, other popular digital currencies like Bitcoin Cash, Maker, Dash, Zcash, Monero and Litecoin have also seen drops of over 10% over the past day. There are a couple that are still somewhat hanging on to their value but overall the situation is not looking good for the crypto market. The good news is that this would be a great time to buy for a possible massive return on investment in the future. The bad news is that this market is highly volatile and it’s impossible to say if and when you can expect to get your money back.